Optional Redemption by Parent Clause Samples
The "Optional Redemption by Parent" clause grants the parent company the right to redeem, or buy back, certain securities or obligations before their scheduled maturity date at its discretion. Typically, this clause outlines the conditions under which the parent may exercise this right, such as specific time frames, notice requirements, and the price or premium to be paid upon redemption. Its core practical function is to provide the parent company with financial flexibility, allowing it to manage debt levels, respond to market conditions, or refinance obligations when advantageous.
Optional Redemption by Parent. Parent may, at any time on and after the Redemption Eligibility Date, redeem all (but not less than all) of the outstanding CVRs at the Redemption Price.
Optional Redemption by Parent. (a) If a Liquidation Event occurs at any time prior to the Maturity Date, then Parent shall have the right, at Parent’s option, to redeem the Parent Notes, in whole but not in part, on the same date as the Repurchase Date (the Repurchase Date, when referred to with respect to redemption by Parent, the “Redemption Date”) at a redemption price equal to 100% of the principal amount thereof, together with accrued interest to (but excluding) the Redemption Date.
(b) In the event Parent shall desire to exercise the right to redeem all of the Parent Notes pursuant to Section 6.2(a), it shall, on or before the tenth (10th) day after the occurrence of a Liquidation Event, mail, or cause to be mailed, to all Holders of record on the date of the Liquidation Event a notice of such exercise (the “Parent Redemption Notice”).
(i) The Parent Redemption Notice of redemption shall specify the aggregate principal amount of Parent Notes to be redeemed, the Redemption Date (which shall be a Business Day), the place or places of payment, that payment will be made upon presentation and surrender of such Parent Notes, that interest accrued to the Redemption Date will be paid as specified in said notice, and that on and after the Redemption Date interest thereon or on the portion thereof to be redeemed will cease to accrue. Such notice shall also state the current Conversion Rate and the date on which the right to convert such Parent Notes or portions thereof into Common Stock will expire.
(ii) On or prior to the Business Day next preceding the date of the Parent Redemption Notice, Parent will set aside, segregate and hold in trust an amount of money in immediately available funds sufficient to redeem on the Redemption Date all the Parent Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion into Common Stock), together with accrued interest to, but excluding, the Redemption Date. Parent shall be entitled to retain any interest, yield or gain on amounts set aside, segregated and held in trust pursuant to this Section 6.2 in excess of amounts required hereunder to pay the redemption price together with accrued interest to, but excluding, the Redemption Date. If any Parent Note called for redemption is converted pursuant hereto prior to such redemption, any money segregated and held in trust for the redemption of such Parent Note shall be discharged from such trust.
(c) If a Parent Redemption Notice has been given as above prov...