Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance Clause Samples
This clause grants the issuer the right to release itself from certain obligations under the agreement, either by legally discharging the debt (legal defeasance) or by being released from specific covenants (covenant defeasance), typically upon meeting specified conditions such as depositing sufficient funds or government securities with a trustee. In practice, this means the issuer can effectively eliminate its liability on the debt or its obligations under certain restrictive covenants, provided it takes the required steps outlined in the contract. The core function of this clause is to provide flexibility for the issuer to manage its debt obligations, often in anticipation of refinancing or restructuring, while offering assurance to investors that the process is governed by clear, pre-established rules.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Issuer may, at its option and at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Company may, at its option and at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Company may at any time, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes, the Note Guarantees, this Indenture, the Collateral Documents and the Intercreditor Agreements and all obligations of the Guarantors discharged with respect to their Note Guarantees upon compliance with the conditions set forth below in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Company and the Guarantors may, at their option and at any time, elect to have either Section 8.2 or Section 8.3 be applied to all outstanding Notes, and have Liens, if any, on the Collateral securing the Notes released and upon compliance with the conditions set forth in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Parent Issuer may, at its option and at any time, elect to have either Section 8.02 or 8.03 be applied to all outstanding Notes upon compliance with the conditions set forth in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Issuers may, at their option and at any time, elect to have either Section 8.2 or
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. With respect to any series of First Lien Notes, the Issuer may, at its option and at any time, elect to have either SECTIONS 8.2 or 8.3 hereof be applied to all outstanding First Lien Notes of such series upon compliance with the conditions set forth in this ARTICLE VIII. To the extent the Issuer exercises its option to effect Legal Defeasance or Covenant Defeasance (each as defined below), such election may be made with respect to the 2029 First Lien Notes only, the 2030 First Lien Notes only, the 2031 First Lien Notes only, or any combination thereof.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Com- pany may, at its option and at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII.
Option to Effect Legal Defeasance or Covenant Defeasance; Defeasance. The Issuer may, at its option and at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Dollar Notes and/or Euro Notes upon compliance with the conditions set forth below in this Article VIII.