Sentences with phrase «bondholders before»

If the issuer has enough cash for paying off its creditors, rather than selling the underlying assets, the company uses the cash for paying the first mortgage bondholders before others.

Not exact matches

Besides the additional delay, many of Yahoo's contracts, including its agreements with bondholders and Yahoo Japan, will have to be renegotiated before the deal can proceed.
Because bondholders receive a fixed interest rate and get paid before stockholders, bonds are safer investments than stocks.
Investors holding floating - rate loans are considered preferred creditors relative to the issuer's other obligations: If the issuer defaults, loanholders will be paid before other investors, including bondholders.
Actually, before I get to Japan, let's get back to Europe because this is what bondholders in Europe have to look forward to.
And the European Central Bank's support of the largest banks and bondholders at the cost of domestic taxpayers has imposed monetary deflation on Eurozone countries, reminiscent of America's 19th - century deflation before and after the Civil War.
On the bright side, bondholders are higher up on the list to get their money back before stockholders.
It would certainly help: Even before bid - rigging case broke, SUNY Poly faced $ 475 million in debts owed to banks and bondholders for projects over the last decade.
Essentially the big lesson here is that when a company liquidates, the bondholders are repaid before the shareholders are; because of this, bonds are known as «senior securities» while stocks are considered more of a «junior security» — this seniority I'm talking about refers to how far down the food chain the securityholder is when it comes to repayment.
The advantage for the investor is that companies are required to pay bondholders first, before short - term creditors, in times of financial difficulty.
Plus, if a company does go down, bondholders are usually compensated before stockholders.
If a company, however, runs into financial trouble, bondholders have legal priority to repayment of principal before stockholders receive any payment.
That would guarantee the banking system, but let the common and preferred stockholders, and bondholders go broke before the taxpayer coughs up the first dime.
In other words, if the company has any assets, such as equipment or inventory, the bondholders would get paid back before any money goes towards the stockholders.
Depending on the terms of the bond, the bondholder also may receive interest payments before the bond matures.
Before 1983, bondholders would receive coupons that they would clip and mail in semi-annually to receive the interest payments.
Other investors would take the first X % of losses before the AAA bondholders would take any losses.
A review of high - yield debt investments should cover: (1) analysis of the industry, including growth rates, special risks and leading companies; (2) analysis of the bond issuer, including the company's position in its industry; new products; management stability; the outlook for growth in revenues and cash flow as captured in Earnings Before Interest, Taxes, Depreciation and Amortization, also called EBITDA; value of corporate assets and the debt maturity schedule; and (3) analysis of the issue, including special provisions in the «bond indenture,» covenants protecting the bondholder, use of the money raised in bond offerings, debt seniority, secondary market liquidity and call provisions.
These bonds are bought by investors on the open market for less than their face value, and the company uses the cash it raises for whatever purpose it wants, before paying off the bondholders at term's end (usually by paying each bond at face value using money from a new package of bonds, in effect «rolling over» the debt to the next cycle, similar to you carrying a balance on your credit card).
Jane will have to wait until the senior bondholders and other creditors have been repaid before she gets any of her original investment back.
Being senior, the loan is repaid first (even before bondholders) in the case of bankruptcy.
Bondholders are made whole before stockholders but they don't stand to gain as much if the company takes off.
The initial lease / bondholder may well be dead before these mature, however, their heirs and assignees will still be around (maybe).
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