Exchange Notes
Definition:
A senior, unsecured, unsubordinated debt security issued by an underwriting bank and whose returns are typically linked to the performance of a market benchmark, less investor fees. Bridge Loans, when converted to Term Loans (on Maturity – generally within a year of granting), often carry the right to be converted into Exchange Notes (in some cases the conversion from Bridge Loan to Exchange Notes is automatic). Exchange Notes tend to be High Yield Bonds benefiting from, among other rights, Call Protection and Registration Rights.