Poison Put

Knowledge Center

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Summary

What is a Poison Put?

A Poison Put in M&A and/or Corporate Finance is a provision in a corporate bond or note that gives its holder the option of redeeming the bond or note at its (high) par value if certain events occur. These events may include a restructuring, the payment of a large dividend or an unfriendly takeover.

Poison-put bonds can act as an anti-takeover mechanism because they discourage acquiring companies by raising their expenses.

They also protect the bondholder from the deterioration of credit quality and credit rating that might result from a leveraged buyout that added to the issuer’s debt.

Special Interest Group

Poison Puts Special Interest Group.

Special Interest Group (3 members)

Forum

Forum about Poison Puts.

🔥	Poison Puts Cases and Examples Hi, do you know of a remarkable case or an interesting example of how poison puts were used?Please enter a reaction to share it for other people to enjoy! Thanks for contributing...!... 2