Chastity Bond
A bond designed to prevent unwanted takeovers by having a maturity that is activated once a takeover is complete.
Investopedia Commentary
The idea behind the chastity bond is that companies will be less inclined to take over a company if they know that afterward they will immediately be forced to pay bondholders.
This is similar in nature to a macaroni strategy except that the redemption prices of the bonds are not inflated - the chastity bond matures at par.
Related Links
Bond Basics Tutorial
The Wacky World of M&As
The Basics of Mergers and Acquisitions
See also: Bond, Hostile Takeover, Macaroni Defense, Poison Pill, Shark Repellant