Available RP Capacity Amount - a brief explanation
- Alice Holian
- +Brian Dearing
What is the Available RP Capacity Amount?
The Available RP Capacity Amount (sometimes referred to as “Pick Your Poison” or the “Available Shareholder Amounts”), permits the issuer to convert Restricted Payment (RP) capacity under selected baskets into debt capacity, typically on a 1:1 basis. The rationale behind this concept is to allow the issuer to collapse what would otherwise be separate but successive transactions and treat them as one transaction.