Examples of New Debt Instruments in a sentence
If New Debt Instruments were created they could be issued directly to CE Holders who have submitted completed Statements of Beneficial Ownership or issued to the Depositary and transferred by the Depositary together with the other Deposited Property to which the relevant CE Holders become entitled.
Where stated interest payable on the Pro Rata shares of the New Debt Instruments is not payable at least annually (the “deferred” interest), such portion of the stated interest will be included in the determination of the OID on such Pro Rata shares of the loans (as set forth below).
The Debtors expect to take the position that the New Debt Instruments will be treated as issued for non-money property that is publicly-traded within the meaning of applicable tax regulations, and thus the “issue price” of the New Debt Instruments will equal their fair market value as of the Effective Date.
It may not be known at the time the Resolution Instrument is made what characteristics and quantum of New Debt Instruments would be needed once the final equity valuation (Valuation 3) is concluded.
A non-U.S. Holder that does not qualify for the portfolio interest exemption generally will be subject to withholding of U.S. federal income tax at a 30% rate (or at a reduced rate or exemption from tax under an applicable income tax treaty) on any interest payments under the New Debt Instruments and any other payments that are attributable to accrued interest.
A U.S. Holder of a Pro Rata share of the New First Lien Exit Facility or the New Convertible Debt (the “New Debt Instruments”) will be required to include stated interest on such shares of the New Debt Instruments in income in accordance with the U.S. Holder’s regular method of accounting to the extent such stated interest is “qualified stated interest.” Stated interest is “qualified stated interest” if it is payable in cash at least annually.
A U.S. Holder of Pro Rata shares of the New Debt Instruments will not be separately taxable on any cash payments that have already been taxed under the OID rules, but will reduce its tax basis in the Pro Rata shares of such loans by the amount of such payments.
If New Debt Instruments are not to be created and allocated to CE Holders this definition and the related definitions for New Debt Instruments should be deleted.
If a U.S. Holder does not elect to amortize the premium, that premium will decrease the gain or increase the loss such U.S. Holder would otherwise recognize on disposition of its interests in the New Debt Instruments.
The principal amount, interest rate, early call provisions if any and maturity date if applicable of the New Debt Instruments will be determined by the Bank of England following the Valuation Date and will be specified in the Supplemental [Bank] Resolution Instrument.] Conversion of AT1 Instruments and Tier 2 Instruments 29.