Debentures definition: Copy, customize, and use instantly
Introduction
The term "Debentures" refers to a type of debt instrument that companies issue to raise capital. It is a written promise to pay the holder a specified amount of interest and repay the principal at a later date. Debentures are typically unsecured and may be convertible into shares of the issuing company. These instruments are often used in corporate financing and can be important in defining the terms of a loan agreement.
Below are various examples of how "Debentures" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Debentures" as a debt instrument
This definition ties "Debentures" to the concept of corporate debt.
"Debentures" means a type of unsecured debt instrument issued by a company to raise funds, which is not backed by collateral but by the issuer's creditworthiness.
Definition of "Debentures" as securities
This definition connects "Debentures" to its role as securities in the financial markets.
"Debentures" refers to long-term debt securities issued by corporations or governments, typically bearing fixed interest rates and repaid over a period of years.
Definition of "Debentures" as a financial instrument
This definition links "Debentures" to its function as a financial tool in investment.
"Debentures" means bonds or other long-term debt securities issued by a company, representing a claim against the issuer’s future earnings.
Definition of "Debentures" as a convertible security
This definition applies "Debentures" to its ability to be converted into shares.
"Debentures" refers to a type of bond or debt security that can be converted into the equity of the issuing company under specific conditions.
Definition of "Debentures" as part of corporate financing
This definition ties "Debentures" to its use in corporate capital raising.
"Debentures" means long-term debt instruments issued by a corporation to finance its operations, with a promise to pay interest periodically and repay principal at maturity.
Definition of "Debentures" as an interest-bearing instrument
This definition ties "Debentures" to its role in generating income for investors.
"Debentures" refers to debt instruments that pay periodic interest to holders and have a set maturity date for repayment of principal.
Definition of "Debentures" as a non-collateralized debt
This definition links "Debentures" to its unsecured nature.
"Debentures" means debt securities issued without collateral backing, relying instead on the creditworthiness of the issuing entity.
Definition of "Debentures" as a fixed-income security
This definition applies "Debentures" to its fixed-income characteristic.
"Debentures" refers to securities that pay fixed interest over a specified period and are repaid upon maturity.
Definition of "Debentures" as an instrument in a corporate merger
This definition connects "Debentures" to their role in mergers and acquisitions.
"Debentures" means debt instruments that may be exchanged or settled during corporate mergers or acquisitions, typically with agreed-upon terms.
Definition of "Debentures" as a senior debt
This definition links "Debentures" to its status in the capital structure hierarchy.
"Debentures" refers to debt securities that rank higher in priority than equity but lower than secured debt in the event of liquidation.
Definition of "Debentures" as a substitute for equity
This definition ties "Debentures" to their potential conversion into equity.
"Debentures" means debt instruments that, under certain conditions, can be converted into shares of the issuing company, providing an alternative to equity financing.
Definition of "Debentures" as part of a bond issuance
This definition connects "Debentures" to its broader category of bonds.
"Debentures" refers to a type of bond that is issued by a corporation and typically sold to institutional investors.
Definition of "Debentures" as long-term corporate debt
This definition links "Debentures" to their role as long-term debt.
"Debentures" means long-term debt instruments issued by companies, used to raise capital for long-term growth or operational needs.
Definition of "Debentures" as a tradable security
This definition ties "Debentures" to their tradability in markets.
"Debentures" refers to tradable debt instruments issued by companies or governments, allowing investors to buy and sell them on secondary markets.
Definition of "Debentures" as an income-producing asset
This definition connects "Debentures" to their investment purpose.
"Debentures" means income-producing debt securities that generate periodic interest payments for investors.
Definition of "Debentures" as an instrument for risk management
This definition links "Debentures" to their role in managing financial risks.
"Debentures" refers to debt securities that corporations use to manage their capital structure and financial risks.
Definition of "Debentures" as a subordinated debt
This definition ties "Debentures" to its subordinate position in the capital structure.
"Debentures" means debt securities that are subordinated to other senior debt obligations in the event of liquidation or bankruptcy.
Definition of "Debentures" as an instrument with fixed terms
This definition connects "Debentures" to their predictable features.
"Debentures" refers to debt instruments with fixed interest rates, maturity dates, and repayment terms, offering predictable returns to investors.
Definition of "Debentures" as part of capital structure
This definition links "Debentures" to their function within a company’s capital.
"Debentures" means part of a company's capital structure, representing borrowed funds that must be repaid with interest over time.
Definition of "Debentures" as a tax-advantageous investment
This definition applies "Debentures" to tax strategies.
"Debentures" refers to certain debt instruments that may offer tax advantages depending on the jurisdiction and how they are structured.
Definition of "Debentures" as a financing tool for expansion
This definition ties "Debentures" to their use in business growth.
"Debentures" means debt securities that companies issue to fund expansions, acquisitions, or other strategic initiatives.
Definition of "Debentures" as a redeemable security
This definition connects "Debentures" to their potential for early repayment.
"Debentures" refers to debt securities that may be redeemed by the issuer before the maturity date under specific conditions.
Definition of "Debentures" as a tool for diversification
This definition links "Debentures" to portfolio diversification.
"Debentures" means debt instruments that investors use to diversify their portfolios by including fixed-income securities.
Definition of "Debentures" as a corporate debt offering
This definition ties "Debentures" to their role in public or private debt offerings.
"Debentures" refers to debt securities that corporations issue to the public or private investors in exchange for capital.
Definition of "Debentures" as a preferred debt instrument
This definition connects "Debentures" to their preference over other debt forms.
"Debentures" means debt instruments that offer preferential treatment in certain circumstances, such as payment priority over other unsecured debt.
Definition of "Debentures" as an asset-backed security
This definition links "Debentures" to asset backing in some cases.
"Debentures" refers to debt securities that may be backed by the assets of the issuer, providing additional security to the holders.
Definition of "Debentures" as a high-yield investment
This definition ties "Debentures" to their potential for high returns.
"Debentures" means higher-risk debt instruments that offer higher yields to compensate investors for taking on additional risk.
Definition of "Debentures" as a financial covenant
This definition connects "Debentures" to their role in setting financial covenants.
"Debentures" refers to debt instruments that include specific financial covenants outlining the financial performance the issuer must maintain.
Definition of "Debentures" as a publicly traded security
This definition applies "Debentures" to their tradability on the open market.
"Debentures" refers to publicly traded debt instruments that allow investors to buy and sell the securities on the open market.
Definition of "Debentures" as an investment-grade instrument
This definition links "Debentures" to their credit rating.
"Debentures" means debt instruments with an investment-grade rating, typically issued by companies with solid financial standing.
Definition of "Debentures" as a preferred debt for investors
This definition ties "Debentures" to their attractiveness to certain investors.
"Debentures" refers to debt securities that investors may prefer due to their relatively lower risk and fixed returns.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.