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What is a springing maturity provision in a debt agreement?
Answer
A springing maturity accelerates a debt's maturity date if certain conditions are met — most commonly, if a more junior debt instrument matures earlier than expected and isn't refinanced. Example: term loan due 2030 has springing maturity to 2028 if senior notes due 2028 aren't refinanced 6 months before maturity.
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springing maturitydebt covenants