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.
Forum about Poison Puts. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.
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...!...