bondholder
noun
\
Definition of bondholder
Examples of bondholder in a Sentence
Recent Examples on the Web
Norwegian Air will meet with bondholders on September 16 to discuss the offer. — Hanna Ziady, CNN, "Norwegian Air fights for survival. Bondholders will determine its fate," 2 Sep. 2019 As Rossello moved closer to a resignation yesterday, the judge overseeing the bankruptcy, Laura Taylor Swain, imposed a 120-day pause on a series of legal fights between bondholders, government officials and the board. — Michael Deibert, Fortune, "Puerto Rico Governor’s Resignation Shakes Bankrupt Island," 25 July 2019 The bondholders, who proposed to invest as much as $18 billion to meet liabilities in exchange for control of the company, argued that doing so would weaken PG&E’s finances, according to people familiar with the matter. — Matt Wirz, WSJ, "Paul Singer’s Elliott Scores Big Win in PG&E Clash," 11 July 2019 Since the foreclosure of this property approximately five years ago, the bondholders became the owners of the property. — cleveland.com, "University Heights mayor says process of redeveloping University Square has begun," 3 July 2019 Working with bondholders and other lenders to develop a restructuing plan, the struggling oil company decided to not make its July 15 senior note interest payment. — Sergio Chapa, Houston Chronicle, "Houston's Sanchez Energy takes another step towards bankruptcy," 15 July 2019 Helicopter transportation services company Bristow Group Inc. filed for chapter 11 bankruptcy protection Saturday after reaching a deal with senior bondholders on a plan to slash its debt load. — Patrick Fitzgerald, WSJ, "Bristow Group Files for Chapter 11 Bankruptcy," 12 May 2019 The bulk of information and projections about the project’s fate have come from Great Hall Partners through monthly construction reports to bondholders that the contractors file on a public disclosure system. — Jon Murray, The Denver Post, "DIA, contractors start talks to keep terminal construction from spiraling out of control," 25 June 2019 The District’s chief financial officer, Jeffrey S. DeWitt, argued that using the funds would violate obligations to bondholders who invested in the convention center. — USA TODAY, "Arthur Ashe, missing Marilyn, pacifier-eating pup: News from around our 50 states," 21 June 2019These 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.
Keep scrolling for more
Keep scrolling for more
More Definitions for bondholder
bondholder
nounFinancial 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.
Source: Investing Answers
bondholder
noun
\