Bond Repurchase Event Clause Samples
The Bond Repurchase Event clause defines the conditions under which an issuer can buy back its own bonds from the market before their maturity date. Typically, this clause outlines the specific triggers or events that allow for repurchase, such as changes in market conditions, regulatory requirements, or the issuer's financial strategy, and may specify the price or method for determining the repurchase amount. Its core practical function is to provide flexibility for the issuer to manage its debt obligations proactively, potentially reducing interest costs or responding to shifts in financial circumstances.
Bond Repurchase Event. On the Bond Repurchase Date, the Company shall repurchase (the “Bond Repurchase Requirement”) the 2025 Bonds for a purchase price equal to the aggregate principal amount of 2025 Bonds then Outstanding, all accrued and unpaid interest thereon, and the Make-Whole Amount determined for the Bond Repurchase Date with respect to such principal amount (the “Bond Repurchase Amount”). On the Bond Repurchase Date, the Company will deposit with the Trustee immediately available funds in an amount equal to the Bond Repurchase Amount and the Trustee shall pay such amount as soon as practicable after receipt thereof to the Holders of 2025 Bonds. Payment of a Bond Repurchase Amount shall be deemed to satisfy and discharge in full the principal of, and Make-Whole Amount, and accrued and unpaid interest on, the 2025 Bonds. The Company’s obligation to satisfy a Bond Repurchase Requirement shall be mandatory upon the occurrence of a Bond Repurchase Event. Any 2025 Bonds surrendered to the Trustee in connection with a Bond Repurchase Requirement shall promptly be cancelled in accordance with Section 3.09 of the Original Indenture. For the purposes of this Section 2.07, the following terms will have the meanings set forth below: