Akademik

debenture

a fixed interest investment in a company, which has priority for interest payments, generally redeemable after the lapse of a specified time

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Any debt obligation backed strictly by the borrower's integrity, e.g. an un secured bond. A debenture is documented in an indenture. Bloomberg Financial Dictionary

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A bond issued with security.

See charges. Note that this is the UK terminology. In the USA, a debenture refers to an unsecured bond. Dresdner Kleinwort Wasserstein financial glossary

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A non-secured loan raised by a company, paying a fixed-rate of interest. Exchange Handbook Glossary

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These are secured corporate bonds that are used to raise long-term debt capital. London Stock Exchange Glossary

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debenture de‧ben‧ture [dɪˈbentʆə ǁ -ər] abbreviation deb. noun [countable usually plural]

FINANCE an interest-paying loan which may be traded on bond markets. In Britain, debentures are normally secured on particular assets of the borrower, so that the person with the debenture will gain these assets if the loan is not repaid, but in the US they are not normally secured in this way:

• In April 1999 the company issued $150 million of 25-year debentures .

• The company defaulted on (= failed to make interest payments on ) $97 million of debentures, but is optimistic that a restructuring agreement can be reached with debtholders.

ˌcallable deˈbenture FINANCE

a debenture that the borrower can choose to repay before the normal or agreed time:

• They are about to sell a new issue of 20-year callable debentures.

conˌvertible deˈbenture also exˌchangeable deˈbenture FINANCE

a debenture that can be exchanged for another form of debt or for shares:

• The board agreed to convert $3.2 million in convertible debentures into 870,000 common shares.

ˌjunior deˈbenture FINANCE

a debenture that will not be repaid until senior debentures have been repaid if the borrower gets into financial difficulty

non-ˌcallable deˈbenture FINANCE

a debenture that the borrower agrees not to repay before the normal or agreed time:

• Selling $100 million of 20-year non-callable debentures yielded 9.31%.

pay-in-ˈkind deˌbenture FINANCE

a debenture that pays interest in the form of additional Securities rather than cash

ˌsenior deˈbenture FINANCE

a debenture that will be repaid before junior debentures if the borrower gets into financial difficulty

suˌbordinated deˈbenture FINANCE

a debenture that will not be repaid until other lenders have been repaid if the borrower gets into financial difficulty

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debenture UK US /dɪˈbentʃə^r/ noun [C] (US also debenture bond)

► FINANCE a type of loan, often used by companies to raise money, that is paid back over a long period of time and at a fixed rate of interest. In the UK, but not in the US, debentures are secured against property or other assets owned by the borrower: »Investors in Wimbledon debentures get a free seat during the annual tournament.
»A fixed debenture is secured on a named asset, similar to a mortgage that is secured on a person's house.
»hold/issue/secure a debenture

→ See also CALLABLE DEBENTURE(Cf. ↑callable debenture), CONVERTIBLE DEBENTURE(Cf. ↑convertible debenture), JUNIOR DEBENTURE(Cf. ↑junior debenture), NONCALLABLE DEBENTURE(Cf. ↑noncallable debenture), PAY-IN-KIND DEBENTURE(Cf. ↑pay-in-kind debenture), SENIOR DEBENTURE(Cf. ↑senior debenture), SUBORDINATED DEBENTURE(Cf. ↑subordinated debenture)

Financial and business terms. 2012.