QUOTE(Wedchar2912 @ Mar 6 2024, 03:08 PM)
so confirm this bond has cumulative deferral feature? if yes, then i would say there is lesser worry. As long as the firm is a going concern, then just let the interest accumulate...
From the Terms (can fall asleep reading lol):
(h) Optional Deferral of
Distribution
: The Issuer, at its sole discretion, provided that no
Compulsory Periodic Distribution Payment Event
has occurred, may opt to defer payment (in whole
or in part) of the Expected Periodic Distribution
Amount which is otherwise scheduled to be paid on
a Periodic Distribution Date, to the next Periodic
Distribution Date by giving an optional deferral
notice in writing ("Optional Deferral Notice")
signed by the Issuer provided that such notice shall
be given no earlier than fifteen (15) business days
nor less than five (5) business days prior to the
relevant Periodic Distribution Date, to the Facility
Agent and the Sukuk Trustee (for and on behalf of
the Sukukholders).
The Issuer may at its sole discretion, elect to further
defer any outstanding Arrears of Deferred Periodic
Distribution by complying with the foregoing notice
requirement. The Issuer is not subject to any limit
as to the number of times the Expected Periodic
Distribution Amount and the Arrears of Deferred
Periodic Distribution can be deferred except that the
provisions on the Dividend and Capital Stopper (as
defined in the section entitled Other terms and
conditions – Dividend and Capital Stopper) shall be
complied with until all outstanding Arrears of
Deferred Periodic Distribution have been paid in
full.
For this purpose, each Optional Deferral Notice
shall be accompanied by a certificate signed by a
director and the company secretary OR a director
and an authorised signatory OR two authorised
signatories, as the case may be, of the Issuer,
confirming that no Compulsory Periodic Distribution
Payment Event has occurred. Any such certificate
shall be conclusive evidence that no Compulsory
Periodic Distribution Payment Event has occurred
and the Facility Agent and the Sukuk Trustee shall
be entitled to rely without any obligation to verify the
same and without liability to any Sukukholder or any
other person on any such Optional Deferral Notice
or any certificate as aforementioned. Each Optional
Deferral Notice shall be conclusive and binding on
the Sukukholders.
Payment of the Arrears of Deferred Periodic
Distribution
The Issuer may satisfy any Arrears of Deferred
Periodic Distribution (in whole or in part) at any time
calculated up to the date of payment of such
Arrears of Deferred Periodic Distribution by giving
notice of such election to the Facility Agent and the
Sukuk Trustee (for and on behalf of the
Sukukholders) not less than five (5) business days
(or such shorter period agreed by the Facility Agent
and the Sukuk Trustee) prior to the relevant
payment date specified in such notice (which notice
is irrevocable and shall oblige the Issuer to pay the
relevant Arrears of Deferred Periodic Distribution
on the payment date specified in such notice).
In any event the Issuer shall satisfy any outstanding
Arrears of Deferred Periodic Distribution (in whole
but not in part) on the earliest of:
(a) the date of redemption of the Sukuk
Musharakah pursuant to any Redemption
Event;
(b) within fifteen (15) days after the occurrence of
a breach of the Dividend and Capital Stopper;
and
© the date such amounts becomes due and
payable under an Enforcement Event.
Any partial payment of outstanding Arrears of
Deferred Periodic Distribution by the Issuer shall be
shared by the Sukukholders on a pro-rata basis.
Any election made by the Issuer to defer the
payment of any Expected Periodic Distribution
Amount or any Arrears of Deferred Periodic
Distribution in accordance with the terms set out in
this paragraph shall not constitute a dissolution
event or an Enforcement Event for any purpose.
Feb 18 2024, 08:11 PM
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Chances of a call in September increased significantly?
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