Bond Education | Glossary
Conditional Call
A clause in the indenture of a security that permits the issuing entity to retire the security at a predetermined price, prior to maturity, based on certain events specified in the bond's indenture. Please see prospectus for details on the conditional calls pertaining to the bond prior to purchasing for your client. Some types of conditional calls - 'A' - 'Change of Control' 'B' - 'Drop in Receivables' 'C' - 'Sale of Equipment' 'D' - 'Destruction of Equipment' 'G' - 'Rating Downgrade' 'H' - 'Tax Law Change' 'I' - 'Stock Premium Inc.' (Callable if stock premium increases by certain amount over convertible bond price) 'J' - 'Proceeds of Stock Off.' (Callable with proceeds of common stock offering) 'Z' - 'Other'