Restricted Subsidiary definition: Copy, customize, and use instantly
Introduction
The term "Restricted Subsidiary" refers to a subsidiary that is subject to specific limitations or restrictions under a contract, typically in financial agreements, bond indentures, or credit facilities. These restrictions often involve limitations on incurring debt, asset transfers, dividend distributions, or other financial and operational activities. It is essential for defining the scope of control and financial obligations within a corporate structure, ensuring compliance with loan covenants and investor protections.
Below are various examples of how "Restricted Subsidiary" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Restricted Subsidiary" as part of a debt covenant
This definition ties "Restricted Subsidiary" to financial limitations imposed under a loan agreement.
"Restricted Subsidiary" means any subsidiary of the Borrower that is subject to the covenants and restrictions set forth in this Agreement, including but not limited to limitations on indebtedness, liens, and asset transfers.
Definition of "Restricted Subsidiary" in a bond indenture
This definition connects "Restricted Subsidiary" to bondholder protections.
"Restricted Subsidiary" refers to any subsidiary of the Issuer that is designated as restricted under the terms of the Indenture, thereby being limited in its ability to incur debt, issue guarantees, or pay dividends outside the consolidated group.
Definition of "Restricted Subsidiary" in a corporate structure
This definition links "Restricted Subsidiary" to internal corporate governance.
"Restricted Subsidiary" means any subsidiary that the Parent Company elects to designate as restricted, thereby subjecting it to specific limitations on financial transactions and operational independence.
Definition of "Restricted Subsidiary" in a leveraged finance agreement
This definition applies "Restricted Subsidiary" to capital structure restrictions.
"Restricted Subsidiary" refers to any subsidiary that is restricted from engaging in certain financial activities, including borrowing additional funds or guaranteeing debt, except as permitted under this Agreement.
Definition of "Restricted Subsidiary" in a secured financing arrangement
This definition ties "Restricted Subsidiary" to collateralized debt obligations.
"Restricted Subsidiary" means any subsidiary whose assets and operations are subject to the security interests and financial covenants established under the Secured Credit Agreement.
Definition of "Restricted Subsidiary" in a dividend restriction context
This definition connects "Restricted Subsidiary" to limitations on distributions.
"Restricted Subsidiary" refers to any subsidiary that is prohibited from declaring or paying dividends to entities outside the Restricted Group without lender or investor approval.
Definition of "Restricted Subsidiary" in bankruptcy protection
This definition links "Restricted Subsidiary" to insolvency safeguards.
"Restricted Subsidiary" means a subsidiary that is subject to contractual restrictions limiting its ability to transfer assets or incur obligations in a manner that could negatively impact creditors.
Definition of "Restricted Subsidiary" in a holding company structure
This definition applies "Restricted Subsidiary" to holding company obligations.
"Restricted Subsidiary" refers to any subsidiary that remains financially and operationally dependent on the Parent Company and is subject to its financial restrictions.
Definition of "Restricted Subsidiary" in an acquisition financing context
This definition ties "Restricted Subsidiary" to M&A-related financial limitations.
"Restricted Subsidiary" means any subsidiary acquired by the Borrower that remains subject to the restrictions set forth in the acquisition financing agreements.
Definition of "Restricted Subsidiary" in an asset sale limitation
This definition connects "Restricted Subsidiary" to asset sale restrictions.
"Restricted Subsidiary" refers to any subsidiary that may not sell, lease, or dispose of assets except as expressly permitted under this Agreement.
Definition of "Restricted Subsidiary" in an intercompany transaction context
This definition links "Restricted Subsidiary" to limitations on transactions within a corporate group.
"Restricted Subsidiary" means a subsidiary that is subject to limitations on intercompany loans, transfers, or guarantees to ensure compliance with financial covenants.
Definition of "Restricted Subsidiary" in a lien restriction agreement
This definition applies "Restricted Subsidiary" to security interest limitations.
"Restricted Subsidiary" refers to any subsidiary that is prohibited from granting liens or encumbrances on its assets except as permitted under the governing agreement.
Definition of "Restricted Subsidiary" in a covenant compliance framework
This definition ties "Restricted Subsidiary" to lender protections.
"Restricted Subsidiary" means a subsidiary that is subject to the financial and operational covenants established under this Credit Agreement to ensure repayment priority.
Definition of "Restricted Subsidiary" in a corporate restructuring context
This definition connects "Restricted Subsidiary" to business reorganization.
"Restricted Subsidiary" refers to any subsidiary that remains subject to legacy financial restrictions following a corporate restructuring or reorganization.
Definition of "Restricted Subsidiary" in a reporting obligation
This definition links "Restricted Subsidiary" to financial disclosure requirements.
"Restricted Subsidiary" means any subsidiary required to submit financial statements and compliance certificates to creditors and investors under this Agreement.
Definition of "Restricted Subsidiary" in a subordinated debt structure
This definition applies "Restricted Subsidiary" to debt subordination.
"Restricted Subsidiary" refers to any subsidiary that may not issue subordinated debt or guarantees without the prior approval of senior creditors.
Definition of "Restricted Subsidiary" in an insurance requirement context
This definition ties "Restricted Subsidiary" to insurance policy obligations.
"Restricted Subsidiary" means a subsidiary required to maintain specific insurance coverage as a condition of its financing arrangements.
Definition of "Restricted Subsidiary" in a government contract restriction
This definition connects "Restricted Subsidiary" to regulatory compliance.
"Restricted Subsidiary" refers to any subsidiary that must comply with government contracting regulations, limiting its ability to transfer or encumber assets.
Definition of "Restricted Subsidiary" in an event of default provision
This definition links "Restricted Subsidiary" to default triggers.
"Restricted Subsidiary" means a subsidiary whose breach of financial covenants, insolvency, or unauthorized transactions could trigger an Event of Default under this Agreement.
Definition of "Restricted Subsidiary" as designated by the parent company
This definition ties "Restricted Subsidiary" to subsidiaries explicitly classified as restricted by the parent company.
"Restricted Subsidiary" means any subsidiary of the company that has been designated as a restricted subsidiary under the terms of the indenture, limiting its ability to take certain financial actions.
Definition of "Restricted Subsidiary" as subject to covenants
This definition connects "Restricted Subsidiary" to its obligations under debt agreements.
"Restricted Subsidiary" refers to any subsidiary bound by the financial and operational covenants set forth in the company’s financing agreements.
Definition of "Restricted Subsidiary" as limited in asset transfers
This definition links "Restricted Subsidiary" to restrictions on asset sales or transfers.
"Restricted Subsidiary" means any subsidiary of the borrower that is restricted from transferring material assets to unrestricted subsidiaries or third parties without lender consent.
Definition of "Restricted Subsidiary" as defined by credit agreements
This definition applies "Restricted Subsidiary" to subsidiaries identified as restricted in credit documents.
"Restricted Subsidiary" refers to any subsidiary designated as such under the company's primary credit facility, limiting its ability to incur additional indebtedness.
Definition of "Restricted Subsidiary" as controlled by a parent entity
This definition ties "Restricted Subsidiary" to corporate control measures.
"Restricted Subsidiary" means any subsidiary over which the parent company maintains significant control and is subject to operational restrictions.
Definition of "Restricted Subsidiary" as part of a debt security structure
This definition connects "Restricted Subsidiary" to financial structuring within an organization.
"Restricted Subsidiary" refers to any subsidiary whose financial and operational flexibility is limited under debt security agreements to protect creditor interests.
Definition of "Restricted Subsidiary" as constrained by dividend limitations
This definition links "Restricted Subsidiary" to dividend and distribution limitations.
"Restricted Subsidiary" means any subsidiary of the company that is subject to restrictions on dividends, distributions, and other equity transfers.
Definition of "Restricted Subsidiary" as legally bound by loan covenants
This definition applies "Restricted Subsidiary" to contractual loan obligations.
"Restricted Subsidiary" refers to any subsidiary required to comply with specific loan covenants that limit its financial and operational activities.
Definition of "Restricted Subsidiary" as impacting consolidated financial statements
This definition ties "Restricted Subsidiary" to its treatment in financial reporting.
"Restricted Subsidiary" means any subsidiary that is consolidated in the company's financial statements and subject to debt covenants that restrict certain transactions.
Definition of "Restricted Subsidiary" as subject to merger restrictions
This definition connects "Restricted Subsidiary" to limitations on mergers and consolidations.
"Restricted Subsidiary" refers to any subsidiary prohibited from merging or consolidating with another entity without meeting specific conditions.
Definition of "Restricted Subsidiary" as designated under bond indentures
This definition links "Restricted Subsidiary" to bond-related contractual restrictions.
"Restricted Subsidiary" means any subsidiary identified as restricted in bond indentures, limiting its ability to take on additional debt or sell assets.
Definition of "Restricted Subsidiary" as affecting borrowing capacity
This definition applies "Restricted Subsidiary" to borrowing limitations under corporate financing.
"Restricted Subsidiary" refers to any subsidiary whose status impacts the company’s overall borrowing capacity under its financing agreements.
Definition of "Restricted Subsidiary" as governed by parent company approvals
This definition ties "Restricted Subsidiary" to approval requirements for financial decisions.
"Restricted Subsidiary" means any subsidiary that requires prior approval from the parent company before undertaking material financial transactions.
Definition of "Restricted Subsidiary" as included in debt covenant calculations
This definition connects "Restricted Subsidiary" to financial covenant compliance.
"Restricted Subsidiary" refers to any subsidiary whose financial activities are factored into the parent company’s compliance with debt covenant ratios.
Definition of "Restricted Subsidiary" as part of secured debt obligations
This definition links "Restricted Subsidiary" to secured debt obligations within a company.
"Restricted Subsidiary" means any subsidiary whose assets or cash flows are pledged as collateral under secured debt agreements.
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