Substantive Defeasement definition
Substantive Defeasement means, in respect of any outstanding Debt represented by Capital Markets Notes, that Avnet has irrevocably deposited funds with a bank, pursuant to an escrow or trust arrangement for the exclusive benefit of the holders of such Notes (or their trustee or agent), and otherwise in accordance with any defeasance terms specified in the indenture governing such Capital Markets Notes, for the sole purpose of repaying such Notes, together with interest thereon in the amount anticipated to accrue up to the date of final payment.
Examples of Substantive Defeasement in a sentence
Avnet shall, and shall cause its Subsidiaries to, promptly upon receipt apply the Net Proceeds of any Permitted Capital Markets Transaction first to the repayment, prepayment, Substantive Defeasement or repurchase and cancellation of Capital Markets Notes having original stated maturities in year 2003, in order of scheduled maturity date.