Lexicon

Open market purchase

Covenant concept · also called open market purchase exception

An exception to pro rata sharing that lets a borrower buy back loans. Serta relied on it for a non-pro rata exchange; the Fifth Circuit rejected that reading of Serta's credit agreement.

Associated with Serta Simmons (2020)

Discussed at ¶¶ 7.64–7.66 of Liability Management Exercises: Law and Practice.