Common use of AHYDO Paydown Clause in Contracts

AHYDO Paydown. (i) Except as set forth in Paragraph 5(c)(ii), the Issuers are not required to make mandatory redemption or sinking fund payments with respect to the Securities. (ii) If the Securities would, but for the application of this Paragraph 5(c)(ii), constitute “applicable high yield discount obligations” (“AHYDOs”) within the meaning of Section 163(i)(1) of the Code, and as a result the Issuers would otherwise be subject to limitations on their deduction of interest in respect of the Securities pursuant to Section 163(e)(5) of the Code, then on the last day of each “accrual period” (as defined in Treasury Regulations Section 1.1272-1(b)(1)(ii)) ending after the fifth anniversary of the “issue date” of the Securities for U.S. federal income tax purposes (each a “Special Mandatory Redemption Date”), the Issuers shall make a mandatory prepayment of principal or interest (any such prepayment a “Special Mandatory Redemption”) on each of the Securities, without premium or penalty, in an amount equal to the minimum amount necessary to ensure that the Securities will not be treated as AHYDOs within the meaning of Section 163(i)(1) of the Code. Such mandatory prepayment will be applied against and reduce the amount due under the applicable Securities outstanding at such time (and shall be treated by the Issuers and the Holders of the Securities as a payment of accrued interest (including original issue discount) on such Security for federal income tax purposes). The Holders of the Securities and the Issuers intend that the Special Mandatory Redemptions be sufficient, and no more than is necessary, to prevent each Security from being treated as an AHYDO within the meaning of Section 163(i)(1) of the Code, and this Paragraph 5(c)(ii) shall be interpreted and applied in a manner consistent with such intent. (iii) Any redemption of the Securities pursuant to this Paragraph 5(c) shall be made pursuant to the provisions of Sections 3.02 through 3.08 of the Indenture. In the case of any Special Mandatory Redemption, the Issuers shall send notice of such redemption to the Trustee 60 days before the redemption date, which notice shall specify the amount of the Special Mandatory Redemption.

AHYDO Paydown. (ia) Except as set forth in Paragraph 5(c)(iiSection 3.09(b), the Issuers are not required to make mandatory redemption or sinking fund payments with respect to the Securities. (iib) If the Securities would, but for the application of this Paragraph 5(c)(iiSection 3.09(b), constitute “applicable high yield discount obligations” (“AHYDOs”) within the meaning of Section 163(i)(1) of the Code, and as a result the Issuers would otherwise be subject to limitations on their deduction of interest in respect of the Securities pursuant to Section 163(e)(5) of the Code, then on the last day of each “accrual period” (as defined in Treasury Regulations Section 1.1272-1(b)(1)(ii)) ending after the fifth anniversary of the “issue date” of the Securities for U.S. federal income tax purposes (each a “Special Mandatory Redemption Date”), the Issuers shall make a mandatory prepayment of principal or interest (any such prepayment a “Special Mandatory Redemption”) on each of the Securities, without premium or penalty, in an amount equal to the minimum amount necessary to ensure that the Securities will not be treated as AHYDOs within the meaning of Section 163(i)(1) of the Code. Such mandatory prepayment will be applied against and reduce the amount due under the applicable Securities outstanding at such time (and shall be treated by the Issuers and the Holders of the Securities as a payment of accrued interest (including original issue discount) on such Security for federal income tax purposes). The Holders of the Securities and the Issuers intend that the Special Mandatory Redemptions be sufficient, and no more than is necessary, to prevent each Security from being treated as an AHYDO within the meaning of Section 163(i)(1) of the Code, and this Paragraph 5(c)(iiSection 3.09(b) shall be interpreted and applied in a manner consistent with such intent. (iiic) Any redemption of the Securities pursuant to this Paragraph 5(c) Section 3.09 shall be made pursuant to the provisions of Sections 3.02 through 3.08 of the Indenture. In the case of any Special Mandatory Redemption, the Issuers shall send notice of such redemption to the Trustee 60 days before the redemption date, which notice shall specify the amount of the Special Mandatory Redemption3.