Template:2002 ISDA Equity Derivatives Definitions 12.3(d): Difference between revisions

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{{eqderivprov|12.3(d)}} “'''{{eqderivprov|Modified Calculation Agent Adjustment (Tender Offers)}}'''” then, on or after the relevant {{eqderivprov|Tender Offer}} Date, the {{eqderivprov|Issuer}} and the {{eqderivprov|Shares}} will not change, but the {{eqderivprov|Calculation Agent}} shall either (i)(A) make such adjustment to the exercise, settlement, payment or any other terms of the {{isdaprov|Transaction}} (including, without limitation, the spread) as the {{eqderivprov|Calculation Agent}} determines appropriate to account for the economic effect on the {{eqderivprov|Transaction}} of such {{eqderivprov|Tender Offer}} (including adjustments to account for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the {{eqderivprov|Shares}} or to the {{isdaprov|Transaction}}), which may, but need not, be determined by reference to the adjustment(s) made in respect of such Tender Offer by an options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange and (B) determine the effective date of that adjustment, or (ii) if the {{eqderivprov|Calculation Agent}} determines that no adjustment that it could make under (i) will produce a commercially reasonable result, notify the parties that the relevant consequence shall be the termination of the {{isdaprov|Transaction}}, in which case “{{eqderivprov|Cancellation and Payment}}” will be deemed to apply and any payment to be made by one party to the other shall be calculated in accordance with Section {{eqderivprov|12.7}}, and in respect of an {{eqderivprov|Option Transaction}}, the Calculation Agent shall determine the amount of such payment as if “{{eqderivprov|Calculation Agent Determination}}” applied to the {{eqderivprov|Option Transaction}}; <br>
:{{eqderivprov|12.3(d)}} “'''{{eqderivprov|Modified Calculation Agent Adjustment (Tender Offers)}}'''” then, on or after the relevant {{eqderivprov|Tender Offer}} Date, the {{eqderivprov|Issuer}} and the {{eqderivprov|Shares}} will not change, but the {{eqderivprov|Calculation Agent}} shall either (i)(A) make such adjustment to the exercise, settlement, payment or any other terms of the {{isdaprov|Transaction}} (including, without limitation, the spread) as the {{eqderivprov|Calculation Agent}} determines appropriate to account for the economic effect on the {{eqderivprov|Transaction}} of such {{eqderivprov|Tender Offer}} (including adjustments to account for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the {{eqderivprov|Shares}} or to the {{isdaprov|Transaction}}), which may, but need not, be determined by reference to the adjustment(s) made in respect of such Tender Offer by an options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange and (B) determine the effective date of that adjustment, or (ii) if the {{eqderivprov|Calculation Agent}} determines that no adjustment that it could make under (i) will produce a commercially reasonable result, notify the parties that the relevant consequence shall be the termination of the {{isdaprov|Transaction}}, in which case “{{eqderivprov|Cancellation and Payment}}” will be deemed to apply and any payment to be made by one party to the other shall be calculated in accordance with Section {{eqderivprov|12.7}}, and in respect of an {{eqderivprov|Option Transaction}}, the Calculation Agent shall determine the amount of such payment as if “{{eqderivprov|Calculation Agent Determination}}” applied to the {{eqderivprov|Option Transaction}}; <br>

Latest revision as of 16:49, 5 September 2018

12.3(d)Modified Calculation Agent Adjustment (Tender Offers)” then, on or after the relevant Tender Offer Date, the Issuer and the Shares will not change, but the Calculation Agent shall either (i)(A) make such adjustment to the exercise, settlement, payment or any other terms of the Transaction (including, without limitation, the spread) as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such Tender Offer (including adjustments to account for changes in volatility, expected dividends, stock loan rate or liquidity relevant to the Shares or to the Transaction), which may, but need not, be determined by reference to the adjustment(s) made in respect of such Tender Offer by an options exchange to options on the relevant Shares traded on such options exchange and (B) determine the effective date of that adjustment, or (ii) if the Calculation Agent determines that no adjustment that it could make under (i) will produce a commercially reasonable result, notify the parties that the relevant consequence shall be the termination of the Transaction, in which case “Cancellation and Payment” will be deemed to apply and any payment to be made by one party to the other shall be calculated in accordance with Section 12.7, and in respect of an Option Transaction, the Calculation Agent shall determine the amount of such payment as if “Calculation Agent Determination” applied to the Option Transaction;