Bullet maturity
Principal is due in one payment at maturity, although interest may be paid earlier. This creates a concentrated payment requirement.
Reference
Impact debt glossary
Use the original bond and trust documents for legally binding definitions.
Secured debt
Debt backed by a legal claim on identified assets. Ranking, asset value and enforcement affect potential recovery.
Senior debt
A claim entitled to payment or collateral proceeds ahead of another claim under the applicable documents.
Pari passu
Claims that rank equally with one another. Identify the borrower, assets and creditor group to which the statement applies.
Debt service coverage ratio (DSCR)
A measure comparing defined cash flow with defined interest and principal payments. Loan covenants and analyst calculations may use different definitions.
Refinancing risk
The possibility that financing needed to repay a maturity will not be available on acceptable terms when needed.
Guarantee
A promise by another party to support payment. Scope, legal enforceability and the guarantor’s capacity all matter.
Collateral
Assets pledged to support a debt claim. Book value does not establish net proceeds available after senior claims and sale costs.
Offering Statement
A specific dated issuer disclosure document used in covered Canadian offerings. Elsewhere, other document types may serve a similar disclosure role.
Contracted revenue
Expected payments under an agreement. Counterparty capacity, duration, price adjustments and termination terms affect their dependability.
FIT contract
An Ontario feed-in tariff electricity purchase agreement with stated pricing and term. Project-specific expiry and operating obligations matter.
Repayment versus impact
The purpose and outcomes of an investment are distinct from evidence that contractual interest and principal can be paid.
Reading financial statements
Compare audited or reviewed results, cash flows, balance-sheet debt and notes. Separate actual results from management projections.
Maturity risk
The exposure created when principal comes due before identifiable cash or financing is available, especially with bullet payments.