Redemption Right definition: Copy, customize, and use instantly
Introduction
The term "Redemption Right" refers to the right of a party, typically a borrower or issuer, to repurchase or redeem securities, such as bonds or shares, before the maturity date, usually at a predetermined price. It is important as it provides flexibility to the issuer, allowing them to manage their capital structure or pay down debt early, which can be beneficial for refinancing or reducing interest obligations.
Below are various examples of how "Redemption Right" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Redemption Right" as an early repurchase option
This definition ties "Redemption Right" to the right of an issuer to repurchase securities before the scheduled maturity date.
"Redemption Right" means the right of the issuer to repurchase or redeem the securities at a predetermined price prior to the maturity date, typically in accordance with the terms outlined in the offering document.
Definition of "Redemption Right" as a bond redemption clause
This definition connects "Redemption Right" to the specific clause in bond agreements that permits early redemption.
"Redemption Right" refers to a clause in bond agreements that allows the issuer to redeem the bonds before their maturity, usually under specified conditions such as changes in interest rates or the issuer’s financial circumstances.
Definition of "Redemption Right" as a corporate share repurchase right
This definition links "Redemption Right" to the repurchase of shares by a corporation.
"Redemption Right" refers to the right of a corporation to repurchase its own shares at a set price, often exercisable at the company’s discretion and subject to specific terms outlined in the company’s charter or offering documents.
Definition of "Redemption Right" as a callable security feature
This definition applies "Redemption Right" to callable securities, which can be redeemed early by the issuer.
"Redemption Right" means a feature in callable securities allowing the issuer to redeem the securities before maturity at a specified price, typically at a premium.
Definition of "Redemption Right" as an investment vehicle exit strategy
This definition ties "Redemption Right" to the strategy used by investors to exit an investment.
"Redemption Right" refers to an exit strategy in investment agreements that allows investors to redeem their interest in a security, typically through a repurchase by the issuer or another party under specified conditions.
Definition of "Redemption Right" as a predetermined buyback option
This definition connects "Redemption Right" to the buyback option outlined in agreements.
"Redemption Right" means the predetermined right of the issuer to buy back securities from the holder at a specified price, subject to the terms of the agreement or offering.
Definition of "Redemption Right" as a debt instrument feature
This definition links "Redemption Right" to its role in debt instruments, allowing for early repayment by the issuer.
"Redemption Right" refers to a feature in debt instruments that grants the issuer the ability to redeem or repay the debt before its scheduled maturity, typically at a fixed price or a price based on prevailing market conditions.
Definition of "Redemption Right" as a way to manage capital structure
This definition applies "Redemption Right" to its role in managing a company’s capital structure.
"Redemption Right" means a right that allows a company to reduce its outstanding debt or equity by repurchasing securities early, thereby optimizing its capital structure.
Definition of "Redemption Right" as a means to mitigate interest rate risks
This definition connects "Redemption Right" to mitigating interest rate risks by allowing early redemption of securities.
"Redemption Right" refers to the issuer's ability to redeem securities before their maturity to take advantage of favorable market conditions, such as declining interest rates.
Definition of "Redemption Right" as a clause in preferred stock agreements
This definition links "Redemption Right" to its inclusion in preferred stock agreements.
"Redemption Right" means a provision in preferred stock agreements that grants the issuing company the right to redeem the preferred shares at a specified price or under certain conditions.
Definition of "Redemption Right" as a contractually negotiated option
This definition applies "Redemption Right" to an option that is negotiated as part of a contract.
"Redemption Right" refers to an option that is negotiated in a contract, allowing the party holding the right to redeem the security or investment under agreed-upon terms and conditions.
Definition of "Redemption Right" as an investor's right to exit early
This definition connects "Redemption Right" to the investor’s ability to exit an investment before the end of its term.
"Redemption Right" refers to an investor’s right to exit an investment before maturity by having the security repurchased by the issuer, usually in accordance with the terms set out at the time of issuance.
Definition of "Redemption Right" as a clause protecting bondholders
This definition ties "Redemption Right" to the protection of bondholders through early redemption options.
"Redemption Right" means a clause that protects bondholders by allowing the issuer to redeem the bonds before the maturity date under certain conditions, thereby ensuring the bondholder receives a fair return.
Definition of "Redemption Right" as an early exit for debtholders
This definition links "Redemption Right" to a mechanism allowing debtholders to exit the investment early.
"Redemption Right" refers to the right of debtholders to redeem their debt securities before the maturity date, typically as part of an agreement between the issuer and the debtholder.
Definition of "Redemption Right" as a flexible financial tool
This definition connects "Redemption Right" to its flexibility in managing financial obligations.
"Redemption Right" refers to a flexible financial tool that allows an issuer to manage its debt or equity obligations by redeeming securities at its discretion, based on market conditions or other factors.
Definition of "Redemption Right" as a risk management strategy for companies
This definition applies "Redemption Right" as part of a risk management strategy.
"Redemption Right" means a strategic tool used by companies to mitigate financial risks, allowing them to redeem securities early in the event of changing market conditions or financial needs.
Definition of "Redemption Right" as a price reset mechanism
This definition links "Redemption Right" to its function as a price reset mechanism for securities.
"Redemption Right" refers to a mechanism that allows the issuer to redeem securities at a price reset, based on prevailing market conditions or other pre-agreed factors.
Definition of "Redemption Right" as a strategic financing option
This definition connects "Redemption Right" to a financing strategy that enables flexibility in repurchasing securities.
"Redemption Right" means a strategic financing option that allows an issuer to repurchase or redeem securities early, offering flexibility in managing its financial obligations.
Definition of "Redemption Right" as an early bond redemption feature
This definition links "Redemption Right" to its role in early bond redemptions.
"Redemption Right" refers to a feature in bond agreements that allows the issuer to redeem bonds before maturity, often when interest rates decline or when the issuer’s financial situation improves.
Definition of "Redemption Right" as a method to preserve credit ratings
This definition connects "Redemption Right" to preserving a company’s credit ratings.
"Redemption Right" refers to a method that enables an issuer to redeem its securities early to preserve or improve its credit rating, by reducing outstanding debt or liabilities.
Definition of "Redemption Right" as an exit option for minority investors
This definition links "Redemption Right" to an exit option provided to minority investors.
"Redemption Right" refers to an option granted to minority investors, allowing them to redeem their securities at a predetermined price, providing a means of exit from the investment.
Definition of "Redemption Right" as an exit strategy for shareholders
This definition applies "Redemption Right" to its role as an exit strategy for shareholders.
"Redemption Right" means the right of shareholders to sell back their shares to the company under agreed-upon terms, often used as an exit strategy during corporate reorganizations or liquidity events.
Definition of "Redemption Right" as a buyback option for corporations
This definition ties "Redemption Right" to a buyback option available to corporations.
"Redemption Right" refers to the right of a corporation to buy back its own outstanding shares or securities from investors, generally at a predetermined price and under specified conditions.
Definition of "Redemption Right" as an early repayment of debt
This definition links "Redemption Right" to early repayment features in debt agreements.
"Redemption Right" means a feature in debt agreements that allows the issuer to repay its debt obligations before the scheduled maturity date, typically at a set price or based on predetermined conditions.
Definition of "Redemption Right" as a clause triggering early settlement
This definition connects "Redemption Right" to early settlement clauses in financial agreements.
"Redemption Right" refers to a clause that triggers the early settlement of a debt, investment, or security, enabling the issuer or party to redeem the instrument before its maturity.
Definition of "Redemption Right" as an issuer’s call option
This definition connects "Redemption Right" to the issuer’s option to call securities before their maturity.
"Redemption Right" refers to the issuer’s right to redeem or call the securities before their maturity date, often at a premium, in order to manage capital structure or take advantage of favorable market conditions.
Definition of "Redemption Right" as a mechanism for investors’ early exit
This definition links "Redemption Right" to providing investors with the ability to exit their investment early.
"Redemption Right" means the mechanism that allows investors to redeem their securities or interests early, often under specific conditions outlined in the original investment agreement.
Definition of "Redemption Right" as a default provision
This definition connects "Redemption Right" to a clause triggered by default events.
"Redemption Right" refers to a provision that allows the redemption of securities in the event of a default or breach of contract, protecting the interests of the holders or parties involved.
Definition of "Redemption Right" as a tool for debt restructuring
This definition ties "Redemption Right" to its role in restructuring corporate debt.
"Redemption Right" means a tool that allows the issuer to redeem debt securities early in the context of a debt restructuring agreement, often to manage liabilities or improve financial terms.
Definition of "Redemption Right" as a requirement for regulatory compliance
This definition links "Redemption Right" to regulatory compliance requirements.
"Redemption Right" refers to a requirement under specific regulations that obligates the issuer to redeem securities within certain timelines or conditions to ensure compliance with applicable laws or rules.
Definition of "Redemption Right" as a trigger for liquidation
This definition connects "Redemption Right" to a liquidation event for the security holders.
"Redemption Right" means a right granted to the holders of securities that, when exercised, triggers the redemption of their securities, potentially as part of a liquidation event.
Definition of "Redemption Right" as a security feature for bondholders
This definition applies "Redemption Right" to its function as a feature protecting bondholders.
"Redemption Right" refers to a feature in bond agreements that provides bondholders with the ability to have their bonds redeemed before maturity, ensuring they are compensated or given an option for early payment.
Definition of "Redemption Right" as a capital return option
This definition links "Redemption Right" to its role in returning capital to shareholders or investors.
"Redemption Right" means the option for the issuer to return capital to investors by repurchasing securities or shares, providing liquidity or facilitating capital management strategies.
Definition of "Redemption Right" as a part of exit strategy for private equity
This definition connects "Redemption Right" to its role in exit strategies for private equity investors.
"Redemption Right" refers to a provision often included in private equity deals that allows investors to redeem their stakes or shares in a company before a planned exit or IPO, providing an option for early liquidation.
Definition of "Redemption Right" as a protective mechanism for senior investors
This definition applies "Redemption Right" as a safeguard for senior investors.
"Redemption Right" means a protective mechanism in agreements that allows senior investors to redeem their securities ahead of junior investors, ensuring their priorities in case of early redemption or liquidation.
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.