Qualified PIK Securities means (1) any preferred Stock or preferred Stock Equivalents of the Borrower (a) that does not provide for any cash dividend payments or other cash distributions in respect thereof on or prior to the Term Loan Maturity Date and (b) that by its terms (and by the terms of any security into which it is convertible or for which it is exchangeable or exercisable) or upon the happening of any event does not (i)(x) mature or become mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (y) become convertible or exchangeable at the option of the holder thereof for Indebtedness or preferred stock that is not Qualified PIK Securities or (z) become redeemable at the option of the holder thereof (other than as a result of a change of control or asset sale event), in whole or in part, in each case on or prior to the first anniversary of the Term Loan Maturity Date and (ii) provide holders thereunder with any rights upon the occurrence of a "change of control" event or asset sale event prior to the repayment of the Obligations under any Credit Document and (2) any Indebtedness of the Borrower which has payment terms at least as favorable to the Borrower and the Lenders as described in clauses (1)(a) and (b) above and is subordinated on customary terms and conditions (including remedy standstills at all times prior to the Term Loan Maturity Date) and has other terms, other than with respect to interest rates, at least as favorable to the Borrower and Lenders as the Senior Subordinated Notes.
Examples of Qualified PIK Securities in a sentence
The Borrower will not permit any Restricted Subsidiary to issue any preferred Capital Stock to any Person other than the Borrower or the Subsidiary Guarantors (or, in the case of a Restricted Subsidiary not directly owned by the Borrower or a Subsidiary Guarantor, to another Restricted Subsidiary) other than Qualified PIK Securities.
The Borrower will not issue any preferred stock or other preferred equity interests other than Qualified PIK Securities.
The Borrower will not issue any preferred stock or other preferred equity interests other than Qualified PIK Securities; provided that the Borrower or any Restricted Subsidiary may issue Disqualified Preferred Stock to the extent that the same shall be treated as, and shall be restricted to the same extent as, Indebtedness for borrowed money for all purposes under this Agreement and is otherwise permitted to be issued hereunder.
The Borrower shall not, and shall not permit any Subsidiary to, issue any preferred Stock or other preferred Stock Equivalents, except that the Borrower may issue Qualified PIK Securities.
Holdings will not own or acquire any assets (other than shares of capital stock of the Borrower, cash and Permitted Investments) or incur any liabilities (other than liabilities under the Credit Documents, liabilities in respect of Qualified PIK Securities and liabilities imposed by law, including tax liabilities, and other liabilities incidental to its existence and business and activities by this Agreement).