Mandatory Redemption; Sinking Fund Clause Samples
The Mandatory Redemption; Sinking Fund clause requires the issuer of a security, typically a bond, to redeem or repurchase a specified portion of the outstanding securities at set intervals before maturity. This is often accomplished through scheduled payments into a sinking fund, which is then used to buy back bonds either on the open market or at a predetermined price. By ensuring that the issuer systematically retires debt over time, this clause reduces credit risk for investors and provides greater certainty regarding the repayment of principal.
Mandatory Redemption; Sinking Fund. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Securities, unless otherwise specified in the terms of a particular series of Securities. If a mandatory or optional sinking fund is specified in the terms of a particular series of Securities, the following provisions will apply thereto (unless otherwise specified): The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment", and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment." The last date on which any such payment may be made is herein referred to as a "sinking fund payment date." In lieu of making all or any part of any mandatory sinking fund payment with respect to any Securities of a series in cash, the Company may at its option (a) deliver to the Trustee Securities of that series theretofore purchased by the Company and (b) may apply as a credit Securities of that series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of optional sinking fund payments pursuant to the next succeeding paragraph, in each case in satisfaction of all or any part of any mandatory sinking fund payment, provided that such Securities have not been previously so credited. Each such Security so delivered or applied as a credit shall be credited at the sinking fund redemption price for such Securities and the amount of any mandatory sinking fund shall be reduced accordingly. If the Company intends so to deliver or credit such Securities with respect to any mandatory sinking fund payment it shall deliver to the Trustee at least 30 days prior to the next succeeding sinking fund payment date for such series (a) a certificate signed by any Officer specifying the portion of such sinking fund payment, if any, to be satisfied by payment of cash and the portion of such sinking fund payment, if any, which is to be satisfied by delivering and crediting such Securities and (b) any Securities to be so delivered. All Securities so delivered to the Trustee shall be cancelled by the Trustee and no Securities shall be authenticated in lieu thereof. If the Company fails to deliver such certificate and Securities at or before the time provided above, the Company shall not be permitted to satisfy any...
Mandatory Redemption; Sinking Fund. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.
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Mandatory Redemption; Sinking Fund. [If applicable, insert] The Company will redeem $ principal amount of Securities of this Series on and on each thereafter through at a redemption price of 100% of principal amount, plus accrued interest, if any, to the redemption date. The Company may, at its option, receive credit towards the principal amount of the Securities of this Series to be redeemed pursuant to this paragraph in an amount equal to 100% of the principal amount (excluding premium) of any Security of this Series that the Company has delivered to the Trustee for cancellation or redemption other than pursuant to this paragraph. The Company may also so receive credit for the same Security of this Series only once.
Mandatory Redemption; Sinking Fund. The Issuer is not required to make mandatory redemption payments or sinking fund payments with respect to the Notes. The Issuer and its Affiliates may at any time and from time to time purchase Notes in the open market, by tender offer, negotiated transactions or otherwise. However, under certain circumstances, the Issuer may be required to offer to purchase Notes for cash as described in Sections 4.07 and 4.10 hereof.
Mandatory Redemption; Sinking Fund. Except as provided in Section 3.1, the Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes.
Mandatory Redemption; Sinking Fund. The Company will redeem on the February 15 next succeeding the Exchange Date (but no earlier than February 15, 2002) and on each February 15 thereafter through February 15, 2011, an aggregate principal amount of Debentures equal to 10% of the maximum aggregate principal amount of Debentures issued under the Indenture at a redemption price of 100% of the principal amount, plus accrued interest to the redemption date. The Company may reduce the principal amount of Debentures required to be redeemed pursuant to this paragraph 6 by subtracting 100% of the principal amount of any Debentures acquired by the Company and delivered to the Trustee for cancellation or converted or redeemed otherwise than pursuant to this paragraph 6. The Company may so subtract the same Debenture only once.
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