Examples of Rights Offering Equity in a sentence
For the avoidance of doubt, if the Borrower has prepaid 25% of the Advance as of the Exchange Date, then the Lender shall acquire 75% of the units of Class B Membership Interests in GMAC which constitute Rights Offering Equity.
No Common Holder of Common Membership Interests of GMAC shall have any preemptive rights under Section 12.3 of the GMAC Operating Agreement in respect of the Rights Offering Equity.
For the purposes of this Section, the term “Rights Offering Equity” shall include any securities issued with respect to the Rights Offering Equity pursuant to a reorganization of GMAC.
The Borrower hereby grants to the Lender (and its successors and assigns; provided, that such successor or assign shall not be an automobile manufacturer or any affiliate thereof unless it is otherwise approved by the Borrower in writing), the option (the “Option”) to exchange 100% of the Obligations for the Rights Offering Equity in full satisfaction of such Obligations.
The Borrower shall only utilize the proceeds from the Advance to pay the purchase price for the Rights Offering Equity.