Recent Examples of bondholder from the Web
Fitch Ratings nonetheless has assured bondholders that debt securitized by tax revenues is still safe.
The report also found that Mount Ida had not met the terms of the bond covenants required by bondholders.
In the restructuring, cocos were wiped out, alongside junior bondholders and shareholders.
If a company is liquidated in bankruptcy, the shareholders are entitled to whatever's left after all other stakeholders, including tax collectors, vendors and bondholders, are paid off.
Then, during a subsequent expansion, the system pays back these bondholders before paying anything out to shareholders.
Once completed, the project is expected to bring in annual tax revenues of $23 million to Chula Vista, which will help pay the bondholders.
On the other end of the spectrum is a U.S. Treasury bond – this is commonly considered one of the safer types of bonds because the government has the power to tax you, the taxpayer, to pay the bondholders.
Reuters also reported that firms specializing in liquidation also planned to submit a $740 million offer for Bon-Ton in partnership with its bondholders, who have called for Bon-Ton to be liquidated.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bondholder.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of BONDHOLDER
What It Is
A bondholder is a person who owns a bond issued by a borrower, typically a company or a government.
How It Works
A bond represents a loan agreement between an issuer and an investor, and the terms of the bond obligate the issuer to repay the borrowed amount (the principal) by a specific date. The investor (the bondholder) usually earns a specific amount of interest on a semiannual basis.
Bondholders can buy and sell their bonds on the bond market.
Why It Matters
Being a bondholder is much different that being a shareholder. For one thing, bondholders are lenders; shareholders are owners. Also, bondholders cannot vote and they are not entitled to dividends. But perhaps most important is the fact that bondholders rank senior to shareholders. This means that the bondholders are among the first in line to be repaid in the event the issuer liquidates. Shareholders might receive some proceeds from the liquidation after this point, if there is anything left. This seniority provides an extra level of security for bondholders, and this is one reason corporate bonds are generally considered "safer" investments than stock.
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