Investors/Bond holders/Lenders: Those who have purchased the bonds or invested in the company
Borrowers/Bond issuers: Those who have issued the bonds.
Bond Indenture: The contract that specifies all rights of the investors & obligations of the issuers.
Covenants: Provisions of the bond indenture.
Affirmative covenants: Actions that borrowers promise to perform e.g. maintenance of certain financial ratios, timely payment of principal and interest etc.
Negative covenants: Prohibitions on the borrowers e.g. restrictions on additional borrowings, negative pledge of collateral etc.
Borrowers/Bond issuers: Those who have issued the bonds.
Bond Indenture: The contract that specifies all rights of the investors & obligations of the issuers.
Covenants: Provisions of the bond indenture.
Affirmative covenants: Actions that borrowers promise to perform e.g. maintenance of certain financial ratios, timely payment of principal and interest etc.
Negative covenants: Prohibitions on the borrowers e.g. restrictions on additional borrowings, negative pledge of collateral etc.
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