PROVISIONAL AND OPTIONAL REDEMPTION Clause Samples
The Provisional and Optional Redemption clause defines the conditions under which an issuer may redeem securities before their scheduled maturity date, either at its discretion or upon the occurrence of specified events. Typically, this clause outlines the notice period required, the redemption price, and any limitations or triggers, such as changes in tax law or market conditions, that allow for early redemption. Its core function is to provide flexibility for the issuer to manage debt obligations proactively, while also informing investors of the circumstances under which their securities may be redeemed early, thereby allocating risk and ensuring transparency.
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PROVISIONAL AND OPTIONAL REDEMPTION. (a) The Company may redeem any portion of the Securities at any time prior to June 15, 2004 (a "PROVISIONAL REDEMPTION"), upon giving notice as set forth in Section 6, at a redemption price equal to $1,000 per $1,000 principal amount of the Securities redeemed plus accrued and unpaid interest, if any (such amount, the "PROVISIONAL REDEMPTION PRICE"), to but excluding the date of redemption (the "PROVISIONAL REDEMPTION DATE") if (1) the Closing Price of the Common Stock has exceeded 150% of the Conversion Price for at least 20 Trading Days within a period of any 30 consecutive Trading Days ending on the Trading Day prior to the date of mailing of the notice of Provisional Redemption (the "NOTICE DATE"), and (2) a shelf registration statement covering resales of the Securities and the Common Stock issuable upon conversion thereof is effective and available for use and is expected to remain effective and available for use for the 30 days following the Provisional Redemption Date unless registration is no longer required.
(b) Except as set forth in clause (a) of this Section 5, the Company shall not have the option to redeem the Securities pursuant to this Section 5 prior to June 15, 2004. Thereafter, the Company shall have the option to redeem any portion of the Securities (an "OPTIONAL REDEMPTION") upon giving notice as set forth in Section 6. The Optional Redemption Prices (expressed as percentages of the principal amount) are as follows for Securities redeemed during the periods set forth below:
PROVISIONAL AND OPTIONAL REDEMPTION. The Securities will be redeemable prior to maturity at the option of the Company, in whole or in part, at any time on or after May 3, 2005, in cash, at the following redemption prices (expressed as percentages of the principal amount thereof), if redeemed during the periods commencing on the dates set forth below, in each case together with accrued and unpaid interest, if any, to the redemption date: May 3, 2005 to April 30, 2006 103.143 % May 1, 2006 to April 30, 2007 102.357 % May 1, 2007 to April 30, 2008 101.571 % May 1, 2008 through May 1, 2009 inclusive 100.786 % The Securities may be redeemed at the election of the Company, as a whole or in parts from time to time, at any time prior to May 3, 2005 (a “Provisional Redemption”), at a redemption price equal to $1,000 per $1,000 principal amount of the Securities redeemed (such amount, together with the Make-Whole Payment (as defined below) the “Provisional Redemption Price”), on the date of redemption (the “Provisional Redemption Date”) specified in the notice of Provisional Redemption if (1) the closing price of the Common Stock on the NNM (or other United States national securities exchange where the Company’s Common Stock is traded) has exceeded 150% of the then current conversion price for at least 20 trading days within a period of any 30 consecutive trading days ending on the trading day prior to the date of mailing of the notice of Provisional Redemption (the “Notice Date”), and (2) a shelf registration statement covering resales of the Securities and the Common Stock issuable upon conversion thereof is effective and available for use and is expected to remain effective and available for use for the 30 days following the Provisional Redemption Date, unless registration is no longer required. Upon any such Provisional Redemption, the Company shall make an additional payment (the “Make-Whole Payment”) with respect to the Securities called for redemption to holders on the Provisional Redemption Date in an amount equal to the total value of the aggregate amount of interest that would have been payable on the Securities from the last day through which interest was paid on the Securities (or May 1, 2002 if no interest has been paid) through May 1, 2005 (or May 2, 2005 if the Provisional Redemption is May 2, 2005). The Company may make the Make-Whole Payment, at its option, either in cash or Common Stock or a combination thereof. Payments made in Common Stock will be valued at 95% of the average closin...
PROVISIONAL AND OPTIONAL REDEMPTION. The Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date on or after November 1, 2012 and before November 1, 2017, to redeem (a “Provisional Redemption”) all or any part of the Securities at a price, payable in cash, equal to the Redemption Price, if the Last Reported Sale Price per share of Common Stock for twenty (20) or more Trading Days in a period of thirty (30) consecutive Trading Days ending on the Trading Day prior to the date the Company provides the notice of Provisional Redemption pursuant to Section 3.06 of the Supplemental Indenture exceeds one hundred and thirty percent (130%) of the Conversion Price in effect on the applicable Trading Day. The Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date on or after November 1, 2017, to redeem (an “Optional Redemption”) all or any part of the Securities at a price payable in cash equal to the Redemption Price.
PROVISIONAL AND OPTIONAL REDEMPTION. (a) The Notes may be redeemed at the election of the Company, as a whole or in part from time to time, at any time prior to May 20, 2004 (a "PROVISIONAL REDEMPTION"), upon at least 20 and not more than 60 days' notice by mail to the Holders of the Notes at a redemption price equal to $1,000 per $1,000 principal amount of the Notes redeemed plus accrued and unpaid interest, if any (such amount, together with the Make-Whole Payment described below, the "PROVISIONAL REDEMPTION PRICE"), to but excluding the date of redemption (the "PROVISIONAL REDEMPTION DATE") if (1) the Closing Sale Price of the Common Stock has exceeded 150% of the Conversion Price for at least 20 Trading Days within a period of any 30 consecutive Trading Days ending on the Trading Day prior to the date of mailing of the notice of Provisional Redemption (the "NOTICE DATE"), and (2) a shelf registration statement covering
PROVISIONAL AND OPTIONAL REDEMPTION. (a) The Securities may be redeemed at the election of the Company, as a whole or in part, at any time before January 18, 2005 (a "PROVISIONAL REDEMPTION"), upon at least 20 and not more than 60 days' notice by mail to the Holders of the Securities at a redemption price equal to $1,000 per $1,000 Principal amount of the Securities redeemed plus accrued and unpaid Interest, if any (such amount, the "PROVISIONAL REDEMPTION PRICE"), to but excluding the date of redemption (the "PROVISIONAL REDEMPTION DATE") if (1) the Trading Price of the Common Stock has exceeded 120% of the Conversion Price then in effect for at least 20 Trading Days within a period of 30 consecutive Trading Days ending on the Trading Day before the date of mailing of the notice of Provisional Redemption (the "NOTICE DATE"), and (2) a shelf registration statement covering resales of the Securities and the Common Stock issuable upon conversion thereof is effective and available for use and is expected to remain effective and available for use for the 30 days following the Provisional Redemption Date, unless registration is no longer required.
(b) At any time on or after January 18, 2005, except for Securities that are converted pursuant to Section 11.1, the Company may, at its option, redeem the Securities in whole at any time or in part from time to time, on any date prior to the Stated Maturity of such Securities, upon notice as set forth in Section 10.4, at the Redemption Price (expressed in percentages of the Principal amount) set forth below if, but only if, redeemed on a Redemption Date occurring during the 12-month period beginning on the dates indicated: Redemption During the Twelve Months Commencing Price ----------------------------------------- -------------- January 18, 2005......................... 103.75% January 18, 2006......................... 102.50% January 18, 2007......................... 101.25% January 18, 2008......................... 100.00%
(c) If the Company exercises its option to redeem the Securities pursuant to this Section 10.1(a) or (b), a Holder may nevertheless exercise its right to convert such Securities when and to the extent permissible under Article 11, in each case, until the close of business two Business Days immediately preceding the Redemption Date.
(d) The Company shall pay any Interest to the Holder of the Securities called for redemption (including those Securities which are converted into Common Stock after the date the notice of the redemption...
