Company XYZ spins off Company LMN, with Company XYZ remaining the obligor for 70% of the original reference obligation and Company LMN becoming the obligor for a new reference obligation. The credit default option is adjusted into two separate contracts specifying Company XYZ and Company LMN as reference entities. The cash settlement amount and premium multiplier are allocated according to a 70/30 division. The listing options market adjusts the option by replacing the affected reference entity with the successor entities and specifies the weight of each new reference entity.
documents/vol00010-efta01353489-pdf.pdf
{"key_people":["Company XYZ","Company LMN"],"document_type":"legal","document_subtype":"contract","key_organizations":["Company XYZ","Company LMN"],"reference_numbers":["P. 6(e)","SDNY_GM_00184064","EFTA01353489"]}