MF Global Holdings Ltd. took the cult of the Wall Street chiefexecutive officer to a new level with a plan to sell bonds that paya higher rate if Chairman and CEO Jon Corzine quits to take a jobfrom the U.S. president.

The futures broker is selling $300 million in five-yearunsecured notes, said a person familiar with the offering whodeclined to be identified because the terms aren't final. The noteswill pay an extra percentage point of interest if Corzine is namedto a federal post and confirmed by the Senate before July 2013, NewYork-based MF Global said in a regulatory filing.

“That seems crazy,” said William Larkin, a fixed-incomeportfolio manager who oversees $500 million at Cabot MoneyManagement Inc. in Salem, Massachusetts, and has 22 years ofexperience. “I've never heard of something like this.”

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.