Exchangeable Note Clause Samples
An Exchangeable Note clause defines the terms under which a debt instrument, such as a note, can be exchanged for another security, typically shares of a company or another form of equity. This clause outlines the conditions, timing, and process for the noteholder to convert their note into the specified securities, including any exchange ratios or triggering events. By providing a clear mechanism for conversion, the clause offers flexibility to investors and can make the note more attractive, while also establishing certainty for both parties regarding the potential change in the nature of the investment.
Exchangeable Note. This Exchangeable Note will rank pari passu with all other unsubordinated indebtedness of Moon Bidco. Delivery of the Principal Amount shall be made without any set off or counterclaim.
Exchangeable Note. The closing of the issuance and sales of an exchangeable note in the principal amount of US$5 million to the Investor by an existing shareholder of the Company shall have occurred.
Exchangeable Note. On the Initial Transfer Date, the Company shall deliver to GWG a promissory note (the “ Exchangeable Note ”) in the principal amount of $162,911,379. The Exchangeable Note shall accrue interest at a rate of 12.40% per annum, calculated on the basis of a 360-day year, and compounded annually on each anniversary of the Initial Transfer Date. At the earlier of the maturity date (as set forth in the Exchangeable Note) or the Final Closing, the outstanding principal balance of the Exchangeable Note (the “ Exchanged Amount ”), shall be satisfied in full by (a) the transfer by the Company to GWG of Common Units in an amount equal to the Exchanged Amount divided by the MLP Unit Exchange Price (the “ Exchangeable Note MLP Units ”) and (b) the payment in cash of all accrued interest from the Initial Transfer Date to the date of such payment (the “ Accrued Interest ”). The Company, GWG and GWG Life agree that, in lieu of payment of the Accrued Interest at the Final Closing Date (or if, earlier, the maturity date of the Exchangeable Note), the Company may, at its option, add an amount equal to such Accrued Interest to the then outstanding principal balance due under the Loan Agreement. The parties agree that the Exchangeable Note shall be in consideration for GWG entering into this Agreement and consummating transactions contemplated hereby and neither GWG or nor any of its Affiliates shall provide any cash proceeds or advances in connection with the Exchangeable Note.
Exchangeable Note. Company shall have issued to Centennial at the Closing the Debentures issuable to Centennial upon exchange of the Exchangeable Note by Centennial in accordance with its terms.