The Book of Jargon® – US Corporate and Bank Finance is one in a series of practice area and industry-specific glossaries published by Latham & Watkins.
The definitions provide an introduction to each term and may raise complex legal issues on which specific legal advice is required. The terms are also subject to change as applicable laws and customary practice evolve. As a general matter, this glossary was drafted from a US practice perspective.
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’33 Act,AAU,Bullet Maturity,Business MAC,Call Option,Call Premium,Call Protection,Call Spread Overlay,CAM,Canadian Wrapper,Cap,Cap Table,ABL,Capex,Capital Expenditures,Capital Markets,Jump Ball,Capital Structure,Capitalize,Capitalized Lease,Capped Call,Carveout,Cash Cap,Cash Equivalent,ABR Loans,Cash Flow Revolver,Cash Flow Statement,Cash Sweep,CEO,Certain Funds,Certificate of Good Standing,CFO,Change of Control,Change of Control Covenant,Change of Control Default,Absolute Priority Rule,Change of Control Put,Chattel Paper,CIM,Circle Up,Class,Class Voting,Clawback,Cleanup Period,Clear Market Provision,Closed Flex,Accelerated Filer,Closing,Closing Condition,Closing Date,Closing Dinner,Closing Fee,Closing Memorandum,Club Deal,COBRA,Collar,Collateral,Acceleration,Collateral Allocation Mechanism,Collateral Agent,Collateral Questionnaire,Comfort Letter,Commercial Letter of Credit,Commercial Paper,Commitment Fee,Commitment Letter,Commitment Papers,Commodity,Accordion Feature,Common Stock,Company MAC,Comparable Treasury,Conditions Annex,Conditions Precedent,Confidential Information Memorandum,Confidentiality Provisions,Conflicting Interest Provisions,Consent Solicitation,Consolidated,Account,Consolidating,Contingent Conversion,Contingent Interest,Contractual Subordination,Control,Controlled Company,Conversion Fee,Conversion Premium,Conversion Price,Conversion Rate,Account Control Agreement,Conversion Value,Convert Deal,Convertible Bond,Coordinated Sell Down Letter,Countersign Deadline Date,Coupon,Covenant,Covenant Defeasance,Covenant Lite,Coverage Covenant,Accounting Circle Up,Covered Call,CP Memo,CPs,Cram,Cramdown,Credit Agreement,Credit Bid,Credit Enhancement,Credit Facility,Credit Rating,’34 Act,Accredited Investor,Cure Period,Currency Swap,Custody Agreements,DACA,DAM,Deal Toy,Deal-Away Fee/Deal-Away Protection,Debenture,Debt Allocation Mechanism,Debt Prepayment,Accreted Value,Debt Sweep,Deemed Dividend,Default,Default Interest,Defeasance,Delayed Draw Term Facility,Demand Registration Rights,Demand Rights,Depository Trust Company,Depreciation,Acquisition Line,Description of Notes,Designated Underwriters’ Counsel,Diligence,DIP Financing,Directed Share Program,Discount Notes,Disproportionate Impact Language,Dividend Blocker Covenant,Documentation Agent,Drag Along Rights,Adjusted EBITDA,Drop Dead Date,DTC,Due Diligence,Due Diligence Condition,Due Diligence Defense,Dutch Auction,EBITDA,ECF,EDGAR,Effective Subordination,Admin Agent,Engagement Letter,Equal and Ratable,Equitable Subordination,Equity Claw,Equity Commitment Letter,Equity Contribution,Equity Cure,Equity Kicker,Equity Prepayment,Equity Sweep,Administrative Agent,eToys,Eurodollar,Eurodollar Loans,European Selling Legend,Event of Default,Evergreen,Excess Cash Flow,Excess Cash Flow Sweep,Exchange Act,Exchange Note Term Sheet,Administrative Agent Fee,Exchange Notes,Exchange Offer,Exchangeable Notes,Expertized Parts,Exxon Capital Exchange Offer,Federal Funds,Fee Credit,Fee Credit Letter,Fee Letter,Fiduciary Out,Affiliate,Final,Financial Buyer,Financial Covenants,Financial Statements,Financing Out,Financing Statement,FINRA,Firm Commitment Underwriting,First Lien,Affiliate Transactions Covenant,First Lien Facilities,Fitch,Fixed Assets,Fixed Charge Coverage Ratio,Fixed Charges,Fixed Income Security,Fixed Rate,Fixture,Flex,Floating Rate,Affirmative Covenant,Follow-On Offering,Forbearance,Foreign Private Issuers,Form 8-K,Form Check,Forward,Fraudulent Transfer,Free Writing Prospectus,Full Disclosure Rep,Funding Fee,A Loan,Agency Fee,Funds Flow Memorandum,Future,FWP,GAAP,General Corporate Purposes,General Intangible,Grace Period,Grantor,Green Shoe,Grid Based Pricing,Agent,Gross Physical Settlement,Gross-Up,Guarantee,Guarantors,Gun Jumping,Haircut,Hair-Trigger,Half a Turn,Happy Meal,Hard Call,Agreement Among Underwriters,Hedge,High Yield,High Yield Bonds,Holdco,Holdco Debt,Holdco Flex,Holdco Guarantor,Holder in Due Course,Holding Company,AHYDO Catch-Up Payment,IFRS,In the Money,Income Statement,Inconsistent Information Out,Incremental Facility,Incurrence Covenants,Indebtedness Covenant,Indenture,Independent Contractor Provisions,AHYDO Rules,Independent Director,Index-Linked Pricing,Initial Public Offering,Initial Purchasers,Institutional Term Loan,Insurance Proceeds Prepayment,Insurance Proceeds Sweep,Integration,Intercreditor Agreement,Interest,All or Substantially All,Interest Coverage Ratio,Interest Payment Date,Interest Period,Interest Rate,Interest Rate Swap,Internal Controls and Procedures,Investment Grade,Investment Grade Bonds,IPO,Issuer,Alternative Transactions Language,Issuing Bank,Item 10,Itemized Flex,Judgment Currency,Junior Debt,Junk Bond,KFC,KYC,L Plus,L/C,Amendment,Large Accelerated Filer,LBO,LBO Fund,Lead Arranger,Lead Manager,Lead Managing Underwriter,League Table Credit,Left,Amortization,Left Placement,Left-Side Arranger,Legal Defeasance,Lender Counterparty,Lenders,Letter of Credit,Level of Comfort,Leverage Ratio,Leveraged Buyout,Leveraged Buyout Firm,Amortization Schedule,LIBOR,LIBOR Floor,LIBOR Loan,LIBOR Tranche,Lien,Lien Subordination,Liens Covenant,Limitation on Restrictions on Payment of Subsidiary Dividends Covenant,Limited Recourse Financing,Liquidity,B Loan,Amortizing Loan,Lockup,Lockup Agreements,Lockup Letters,Long,LSTA,LTM,M&A,MAC,MAE,Angel Investor,MAE Qualifier,Maintenance Covenant,Make-Whole,Management’s Discussion and Analysis,Mandatory Offer to Purchase,Mandatory Prepayments,Market Flex,Market MAC,Market Maker Prospectus,Marketing Period,Anti-Layering Covenant,Mark-to-Market,Master Agreement Among Underwriters,Material Adverse Change,Material Adverse Effect,Maturity/Maturity Date,Maximum Leverage Ratio Condition,MD&A,Merger Covenant,Mezz,Mezz Lenders,Applicable Margin,Mezzanine Financing,MFN Pricing,Mini Perm,Minimum EBITDA Condition,Minimum Hold,Minimum Marketing Period,Minimum Syndication Period,Money Market,Monoline Bond Insurance,Moody’s,Arbitrage,Mortgage,Most Favored Nation Pricing,Munis,Naked Short,Nancy Reagan Defense,NASD,NASDAQ,NC,Negative Assurance,Negative Assurance Letter,Arranger,Negative Covenant,Negative Pledge,Negotiable Instrument,Net Debt,Net Lease,Net Share Settlement,No Fiduciary Duty Provisions,No New Info,No New Information Out,Non-Accelerated Filer,Article 9,Non-Call,Non-Call Period,Non-Investment Grade,Non-Recourse Financing,No-Shop Provision,Notes,Numbers,Numerosity,NYSE,OC,As-Extracted Collateral,Off Balance Sheet Arrangements,Offering Circular,Offering Memorandum,OID,OM,One-on-One,Open Flex,Open Kimono,Operating Expense,Operating Subsidiary,Asset Sale Covenant,Option,Optional Prepayment,Optional Redemption,Org ID Number,Org Meeting,Organizational Meeting,Original Issue Discount,OTC,Out of the Money,Outs,Asset Sale Prepayment,Over-Allotment Option,Over-the-Counter,P&L Statement,Par/Par Value,Pari Passu,Parity Trigger,Patriot Act Provisions,Patriot Act Requirements,Pay-In-Kind,10b-5 Rep,Asset Sale Sweep,Payment Blockage Provision,Payment Date,Perfect or Perfection,Perfection Certificate,Perfection under Article 9,Periodic Reports,Permanent Securities,Permitted Debt,Physical Settlement,Piggy Back Registration Rights,PIK,PIK Notes,PIK Toggle,PIK Toggle Notes,PIPE,Placement Fee,Plain English Rules,Pledge Agreement,Pledgor,Poison Pill,Assignment,Portfolio Company,Possessory Collateral,Post-Closing Flex Letter,Post-Effective Period,Power of Attorney,Precedent,Pre-Closing,Preference,Preference Period,Preferred Stock,At Par,Prefiling Period,Preliminary Prospectus,Pre-Pack,Prepayment Premium,Pricing,Pricing Flex,Pricing Grid,Pricing Supplement,Pricing Term Sheet,Primary Offering,Automatic Shelf Registration,Priority,Private Lender,Private Offering,Private Placement,Pro Forma,Profit and Loss Statement,Project Finance,Prospectus,Prospectus Supplement,Automatic Stay,Public Float,Public Lender,Public/Private Information Undertaking,Purchase Accounting,Purchase Agreement,Push-Down Accounting,Put Bond,Put Bond Holiday,Put Option,Put Right,Availability,QIB,Qualified Counterparty,Qualified Institutional Buyer,Quiet Period,Ranking,Ratings Agencies,Ratings Condition,Ratings-Based Flex,Ratio Debt,Ratio Test,Available Amounts Basket,Record Date,Red,Refinancing,Refreshing the Shoe (or Reloading),Reg Rights,Registration Rights,Registration Statement,Regulation D or Reg D,Regulation FD,Regulation G,Balance Sheet,Regulation S,Regulation S-K,Regulation S-X,Reinvestment Right,Remedy Bar,Rep,Reporting Company,Representation and Warranty,Representation Regarding Accuracy of Disclosed Information,Repricing Amendment,Balloon Payment,Required Class Lenders,Required Lenders,Requisite Lenders,Reserve Adjusted Eurodollar Rate,Restricted Junior Payment or Restricted Payment,Restricted Payments Covenant,Restricted Securities,Restricted Subsidiary,Reverse Breakup Fee,Revolver,144A for Life Offering,Bank Book,Revolver Grid,Revolving Facility,Revolving Loans,Right,Right Placement,Road Show,Rollover Equity,Rollover Fee,Rollover Loans,Roll-up Financing,Bank Meeting,Rule 10b-5,Rule 10b-5 Representation,Rule 10b5-1 Plan,Rule 144,Rule 144A,Rule 144A Financing,Rule 159,S&P,Sale and Leaseback,Sarbanes-Oxley,Bank-Bridge Structure,SAS 72,Satisfaction and Discharge,SEC,Second Lien,Second Lien Facilities,Secondary Offering,Section 4(a)(2),Secured Debt,Secured Lenders,Secured Leverage Ratio,Bank-Only Deal,Securities Act,Securities Demand,Securities Demand Holiday,Securities Offering Reform,Securitization,Security,Security Agreement,Security Interest,SEDAR,Bankruptcy,Selective Disclosure,Selling, General and Administrative Expense,Selling Shareholders,Senior Debt,Senior Notes,Senior Secured Credit Facilities,Senior Secured Facilities Term Sheet,Senior Subordinated Notes,SG&A,Shelf Registration,Bankruptcy Code,Shelf Registration Statement,Shelf Takedown,Shoe,Short,Sight Draft,Smaller Reporting Company,Soft Call,Solvency Certificate,SOX,SOX Section 404,Bankruptcy Remote Vehicle,SPE,Special Purpose Entity,Special Purpose Vehicle,Specified Representations Language or Specified Reps,Sponsor,Spot Market,Spread,SPV,Stale,Staleness,Base Prospectus,Standard & Poor’s,Standby Letter of Credit,Standstill or Standstill Period,Staple Financing,Staple Papers,Step Down,Step Up,Stock Purchase Agreement,Straight-Line Basis,Strategic Buyer,Base Rate,Structural Subordination,Structure Flex,Subordinated Debt,Subordinated Intercompany Note,Subordination,Subrogation,10b-5 Letter,Subsidiary Guarantor,135 Day Rule,135(c) Release,3(a)(9),4(2),AAIP,ABS,Account Party,Accrued and Unpaid Interest,Additional Amounts,Additional Interest or Special Interest,Substantive Consolidation,Agreement Among Initial Purchasers,AICPA,Alleco,Allocation,Allotment,Amend and Extend,American Depository Receipt or ADR,AML,Anti-Money Laundering,Arranger Fee,Successful Syndication,Asset-Backed Security,Asset-Based Loan,Auction Rate Securities,Audit Committee,Authentication,Average Life,Bad Actor,Basel I,Basel II,Basel III,SunGard Language,Bear Market,Bed Bug Letter,Bid Letter,Bidco,Block Sale/Trade,Blood Letter,Blood Provisions,Bloomberg Screen,Blue or “EZ-Blue”,Blue Sky Laws,Base Rate Loans,Superholdco,Board Observer Rights,Boilerplate,Book,Book Building,Book Entry,Box,Builder Basket,Bulge Bracket Bank,Bull Market,Buy Back,Supermajority Voting,Call,Callable,Capital Adequacy,Capital Lease,Carried Interest,Carry,Carry Back,Carry Forward,Category 1/2/3,CDS,Suretyship,Certificate of Formation or Articles of Organization,Certificate or Articles of Incorporation,CFC,Check the Box/Check-the-Box Election,Chinese Wall,Clean-Down,Clear,Clearing System,Clearstream,Swap,Closing Checklist,Collateral Trust Agreement,Co-Manager,Commitment Period,Compliance Certificate,Conditions Subsequent,Confi,Confidentiality Agreement,Contingent Registration Rights,Control Agreements,Swing Line Loans/Swingline Loans,Controlled Foreign Corporation,Convertible Security,Counterparts,Credit Default Swap,Credit Group,Creeping Tender,Cross Acceleration,Cross Default,Cross Receipt,Cross-Stream,Syndicate,Cure,CUSIP,CUSIP Number,Custodian,D&O Policy,Data Room,DCM,Deal Creep,Debt Test,Debtor-in-Possession,Syndicate Covering Transaction,Declared Default,Deemed Borrower Consent,Defaulting Lender,Definitive Bond,Delaware 251(h),Dematerialize,Deposit Account Control Agreement,DGCL,Ding the Basket,DIP,Syndicate Short,DIP Lender,Discontinued Operations,Disenfranchisement,Disqualified Lender,Disqualified Stock,Distressed Debt,Dividend Stopper Covenant,Dodd-Frank Act,Double Luxco Structure,Downstream,Syndication,DQ List,Drive By,Due Date,DWAC,Earn-out,EBIT,EBITDAR,ECM,EEA,EEA Legend,Syndication Agent,EGC,Encumbrance,Equity,Equity-Linked,ERISA,Escrow,Ethical Wall,EU,EURIBOR,EURIBOR Floor,144A Offering,Basis Point,Syndication Agreement,Euroclear,Exit Financing,Extraordinary Gains or Losses,Face Value,Fair Market Value,Fairness Opinion,Fallen Angel,FCPA,Fee Rebate,Finance Subsidiary,Synergies,Financial Assistance,First Out Facility,Float,Floating GAAP,Floating Rate Note,FMV,Forbearance Agreement,Force Majeure,Foreign Exchange Risk,FPA,Synthetic Letter of Credit,FPI,Fraudulent Conveyance,Free and Clear,FRN,Fronting Bank,Fronting Fee,Frozen GAAP,Funds Flow Statement,Fungible,GDR,T+ Legend,General Basket,Global Depository Receipts,Global Note,Go Shop Period,Going Dark,Good Standing (Certificate),Guarantor Coverage Test,Guarantor Financial Statements,Headroom,Tag Along Rights,Highly Confident Letter,Hold,Hold Harmless Letter,Hung Bridge,Hybrid Security,IAASB,IASB,ICA,Incumbency Certificate,Indemnification Provisions,Takedown Fee,Information Rep or Info Rep,Insolvent,Institutional Investor,Interim Facility,International Accounting Standards Board,Investment Company,Investment Company Act,IPO Clawback,ISDA,ISDA Master Agreement,Target,ISDA Schedule,ISIN,Issue Price,JLA,JOBS Act,Joint and Several Liability,Joint Lead Arranger,LC Bank/LC Issuer,Lead Left,Target MAC,Limitation Language,Listed Company,Loan To Own,LSE,Luxco,Luxembourg Stock Exchange,Management Buy-In,Management Buy-Out,Margin,Master Limited Partnership,Tax Gross-Up,Material Non-Public Information,Material Subsidiary,MBI,MBO,MLP,MNPI,NDA,Net Proceeds,NOLs,Non-Deal Road Show,Tax ID Number,Non-Disclosure Agreement,Non-GAAP Financial Measures,Novation,Obligor,OFAC,OMD,OMR,Opco,Operating Company,Opinion Letter,Basket,Technical Amendment,Ordinary Shares,Outside Date,Pari Passu Bonds,Participation,PD,PD-Compliant,Permitted Liens,Piercing the Corporate Veil or Piercing,Pink,Placement Agent,Tenor,Plug and Play,Preemptive Rights,Preliminary Offering Memorandum,Pre-Marketing,Present Value,Price Talk,Primary Obligor,Printer,Pro Rata,Term Loan,PTP,Public,Public Offering,Public Offering System,Publicity Guidelines,Publicly Traded Partnership,QIU,Qualified Purchaser,Real Estate Investment Trust,Reconciliation,Term Loan A,Red Herring,Redemption Price,Reg S,Registered (<em>i.e.</em>, with the SEC),Registered Bonds,Registrar,Regulation M,Reimbursement Agreement,REIT,Term Loan B,Release Clause,Rep Letter or SAS 72 Letter of Representations,Reporting Requirements,Repricing Event,Research Guidelines,Restricted,Retained Cash,Retained Cash Flow,Right of First Offer,Right of First Refusal,Term Loan Facility,Ring-fencing,Risk Factors,ROFR,Rule 10b-5 Opinion,Rule 144A for Life Offering,Rule 405,Rule 506,Safe Harbor,Sales Force Presentation,Same Day Funds,Term Loan Term Sheet,SAS,SAS 100,SEC-Registered Offering,Section 11,Section 12,Section 5,Secured Claim,Secured Creditors or Secured Parties,Securities Account Control Agreement,Security Package,Term Sheet,Selecteds,Set-off,Settle,Several Liability,Silent Second,Skim,Slug,Sovereign Wealth Fund,SPAC,Special Committee,Term-Out Option,Special Interest,Special Purpose Acquisition Company,Spin-off,Sponsor/Borrower Buy Backs,Spot Price,Stabilization,Statements on Auditing Standards,Structure Memorandum,Subordinate or Subordinated,Summary,Tick Mark,Swapping Seconds,Syndication Date,Tack-On Offering,Tail Fee,Tail Period,Tail Provision,Take and Hold,Target Hold,Tax Redemption,T-bills,Bear Hug Letter,Ticking and Tying,Tender Offer,Testing the Waters,Third Party Beneficiary,TLA,TLB,Toggle Facility,Tombstone,Tombstone Ad,Topco,Ticking Fee,Transfer Agent,Treasury Bills,Triple Hook,Trust Indenture,Umbrella Partnership Real Estate Investment Trust,Undersecured Claim,Underwriting Fee,Unencumbered,Unsecured Claim,Unsecured Creditor,Total Cap,Upfront Fee,UPREIT,Upstream,Variable Rate Debt Obligation,Whitelist,Whitewash,Withholding Tax,www.lw.com,XBRL,Xerox Language,Trade Letter of Credit,YieldCo,YTD,’40 Act,Guarantee Limitation Language,Tranche,Reliance Letter,Tranche A Term Loans,Tranche B Term Loans,Tree,True Sale,Trustee,Beige Book,Turn,UCC,UCC Diligence Certificate,UCC-1,UCC-3,Underwriters,Underwriting Agreement,Underwriting Discount,Undrawn Commitment,Unrestricted Subsidiaries,Invitation Telex,Beneficial Owner,Use of Proceeds,Voluntary Prepayments,Waiting Period,Waivable Mandatory Prepayment,Waiver,Warrants,Waterfall,Weighted Average Life,Well Known Seasoned Issuer,WGL,Best Efforts Syndication,White Knight,WKSI,Working Capital,Working Capital Facility,Wrapped Bond,Yank-a-Bank,Yield,Zero Coupon Bond,Zone of Insolvency,Big Boy Letter,Bill of Exchange,Bill of Lading,Blacklist,404 Compliant,Blackout Period,Bondholder,Bonds,Book Value,Bookrunner,Booster Shot Provision,Borrower,Borrowing Base,Bought Deal,bps,A / B Exchange Offer,Breakage Costs,Breakup Fee,Bridge Facility,Bridge Facility Term Sheet,Bridge Loan Agreement,Bridge Loans,Bringdown Certificate of Good Standing,Bringdown Comfort Letter,Bringdowns,Broker-Dealers