Predecessor Security definition: Copy, customize, and use instantly
Introduction
The term "Predecessor Security" refers to securities that existed prior to the issuance of a new security, often in the context of a corporate restructuring, reorganization, or other financial transactions. It typically involves a situation where an existing security (such as a bond or note) is replaced by or exchanged for a new security, but the original security still holds importance in terms of its value, rights, or obligations during the transition. This term is commonly used in debt restructuring, mergers, acquisitions, or the issuance of convertible securities.
Below are various examples of how "Predecessor Security" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Predecessor Security" as a security in a debt restructuring
This definition ties "Predecessor Security" to corporate debt restructuring.
"Predecessor Security" means any debt security or bond that existed prior to the issuance of a new security, and which is replaced or exchanged for the new security as part of a debt restructuring or reorganization process.
Definition of "Predecessor Security" as part of an exchange offer
This definition connects "Predecessor Security" to exchange offers in securities transactions.
"Predecessor Security" refers to any security or debt instrument previously issued by the issuer, which is being exchanged for a new security in connection with an exchange offer or similar transaction.
Definition of "Predecessor Security" as a source of rights or obligations
This definition links "Predecessor Security" to the rights and obligations it carries over.
"Predecessor Security" means any security that, prior to its exchange or replacement, carries over certain rights, obligations, or claims to the new security issued in its place.
Definition of "Predecessor Security" as a part of a corporate reorganization
This definition ties "Predecessor Security" to corporate reorganizations.
"Predecessor Security" refers to any security issued by an entity prior to a corporate reorganization, the terms and conditions of which are affected or superseded by the newly issued security.
Definition of "Predecessor Security" as a convertible instrument
This definition connects "Predecessor Security" to convertible securities.
"Predecessor Security" means a security issued by the issuer that is exchanged for a new convertible instrument, typically in a situation where the original security is converted into a new form as part of an investment transaction.
Definition of "Predecessor Security" in a merger or acquisition
This definition links "Predecessor Security" to corporate mergers or acquisitions.
"Predecessor Security" refers to a security issued by a target company prior to its merger or acquisition, which may be replaced or substituted with a new security issued by the acquiring company as part of the transaction.
Definition of "Predecessor Security" in bankruptcy proceedings
This definition ties "Predecessor Security" to insolvency and bankruptcy situations.
"Predecessor Security" means any security issued by the debtor entity prior to the bankruptcy proceeding, which may be modified, substituted, or replaced by new securities as part of the bankruptcy reorganization process.
Definition of "Predecessor Security" as a part of a capital raise
This definition connects "Predecessor Security" to capital raising activities.
"Predecessor Security" refers to any prior security or debt instrument that is replaced with a new issuance of securities, often as part of a capital raising or refinancing process.
Definition of "Predecessor Security" as a debt instrument
This definition ties "Predecessor Security" to debt securities.
"Predecessor Security" means any debt instrument issued by the issuer before the new security issuance, which may carry similar characteristics and obligations as the newly issued debt instrument.
Definition of "Predecessor Security" in an international transaction
This definition connects "Predecessor Security" to cross-border transactions.
"Predecessor Security" refers to a security that was issued under the laws of one jurisdiction but replaced or exchanged with a new security issued under the laws of another jurisdiction, often in the context of international debt restructuring.
Definition of "Predecessor Security" as a source of collateral
This definition links "Predecessor Security" to collateral provisions.
"Predecessor Security" means any security or asset previously pledged as collateral in a financing arrangement, which may be replaced or substituted by a new security under the terms of the contract.
Definition of "Predecessor Security" as a contractual term
This definition ties "Predecessor Security" to specific agreements.
"Predecessor Security" refers to any security that was previously issued under a prior agreement or contract, and which is superseded or replaced by a new security under the terms of a new contract or financing arrangement.
Definition of "Predecessor Security" as a redeemed security
This definition connects "Predecessor Security" to redeemed securities.
"Predecessor Security" means a security that was redeemed, retired, or repurchased prior to the issuance of the new security, and may still have residual claims or rights attached to it.
Definition of "Predecessor Security" as part of a financial restructuring
This definition links "Predecessor Security" to financial restructuring efforts.
"Predecessor Security" refers to any security or bond issued before a financial restructuring, which is replaced by a new security or instrument issued to creditors or investors during the restructuring process.
Definition of "Predecessor Security" as a replacement instrument
This definition ties "Predecessor Security" to the process of replacement.
"Predecessor Security" means any security that is exchanged or replaced by another security or debt instrument as part of a transaction, restructuring, or other corporate activity.
Definition of "Predecessor Security" in a bond issuance
This definition connects "Predecessor Security" to bond issuance and bondholder rights.
"Predecessor Security" refers to a bond or debt security that existed prior to a new issuance, where the terms and rights associated with the predecessor bond may carry over or be modified in the newly issued bond.
Definition of "Predecessor Security" as part of a refinancing deal
This definition links "Predecessor Security" to refinancing.
"Predecessor Security" means any security previously issued by the issuer, which is refinanced, replaced, or substituted by a new issuance of securities as part of a refinancing deal.
Definition of "Predecessor Security" in relation to debt maturity
This definition ties "Predecessor Security" to debt maturities.
"Predecessor Security" refers to a debt instrument that matures prior to the issuance of a new debt instrument, with the new debt possibly having terms or characteristics based on those of the predecessor security.
Definition of "Predecessor Security" as a negotiated instrument
This definition connects "Predecessor Security" to negotiated financial instruments.
"Predecessor Security" means any previously negotiated or agreed-upon security, which is replaced by or exchanged for another financial instrument, as per the terms of the agreement or transaction.
Definition of "Predecessor Security" as an instrument for valuation
This definition ties "Predecessor Security" to financial valuation processes.
"Predecessor Security" refers to the original instrument or security used as a benchmark for the valuation of a new security, often in the context of financial restructuring, capital raising, or transactions.
Definition of "Predecessor Security" in the context of a public offering
This definition ties "Predecessor Security" to public offerings.
"Predecessor Security" refers to any security or debt instrument that was previously issued by the issuer and is being replaced by a new security issued in a public offering or other market transaction.
Definition of "Predecessor Security" as part of a debt swap
This definition connects "Predecessor Security" to debt swap arrangements.
"Predecessor Security" means any debt instrument exchanged in a debt swap transaction, where the security is replaced or substituted by a new instrument under agreed-upon terms.
Definition of "Predecessor Security" as an instrument in a debt-for-equity swap
This definition ties "Predecessor Security" to debt-for-equity swaps.
"Predecessor Security" refers to any debt security or instrument exchanged for equity securities as part of a debt-for-equity swap transaction, typically in restructuring scenarios.
Definition of "Predecessor Security" in a distressed asset sale
This definition links "Predecessor Security" to distressed asset sales.
"Predecessor Security" means a security that was part of the distressed assets being sold, with the new security issued as part of the sale agreement.
Definition of "Predecessor Security" in an issuer default
This definition connects "Predecessor Security" to defaults by issuers.
"Predecessor Security" refers to any security that was issued by an entity that has defaulted, with rights, obligations, or claims possibly carried over to a new security issued following the default.
Definition of "Predecessor Security" as part of a bond restructuring
This definition ties "Predecessor Security" to bond restructuring processes.
"Predecessor Security" means any bond or debt instrument that is restructured or renegotiated, which may be substituted by a new bond or debt instrument as part of the restructuring agreement.
Definition of "Predecessor Security" in a seniority change
This definition links "Predecessor Security" to changes in seniority or ranking.
"Predecessor Security" refers to any security whose seniority or ranking is changed or modified during a financial transaction, where it may be replaced or subordinated by a new security with a different priority.
Definition of "Predecessor Security" as part of a consent solicitation
This definition connects "Predecessor Security" to consent solicitation processes.
"Predecessor Security" means any security subject to a consent solicitation, in which holders of the predecessor security may vote on whether to approve a modification, exchange, or amendment of the terms of the security.
Definition of "Predecessor Security" in a hybrid security transaction
This definition ties "Predecessor Security" to hybrid financial instruments.
"Predecessor Security" refers to any hybrid financial instrument that is exchanged or replaced with another security or hybrid instrument during a transaction involving both debt and equity components.
Definition of "Predecessor Security" as part of a loan-to-bond conversion
This definition connects "Predecessor Security" to loan-to-bond conversions.
"Predecessor Security" means a loan or debt instrument that is converted into a bond or other security as part of a loan-to-bond conversion transaction, commonly found in corporate restructuring.
Definition of "Predecessor Security" in relation to changes in terms
This definition links "Predecessor Security" to modifications in financial terms.
"Predecessor Security" refers to any security or debt instrument whose terms are modified or amended in a transaction, with the new terms incorporated into a successor security.
Definition of "Predecessor Security" as part of a voluntary exchange
This definition ties "Predecessor Security" to voluntary exchange offers.
"Predecessor Security" means any security voluntarily exchanged for another instrument as part of a voluntary exchange offer made to bondholders, equity holders, or creditors.
Definition of "Predecessor Security" in relation to a change in control
This definition connects "Predecessor Security" to corporate control changes.
"Predecessor Security" refers to a security issued by a company undergoing a change in control, where the original security may be replaced or modified as a result of the change in control.
Definition of "Predecessor Security" as a debt maturity extension
This definition links "Predecessor Security" to debt maturity changes.
"Predecessor Security" means any debt instrument whose maturity has been extended or modified in a refinancing transaction, with a new security issued to replace or extend the original maturity.
Definition of "Predecessor Security" as part of a bankruptcy settlement
This definition connects "Predecessor Security" to bankruptcy settlements.
"Predecessor Security" refers to any security issued by the debtor in bankruptcy proceedings, which is restructured, cancelled, or replaced by new securities as part of the bankruptcy settlement.
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.