Call MF Global's CEO Jon Corzine the $325 Million Dollar Man

We all know about MF Global's troubles. We all know about CEO Jon Corzine's struggles since taking the helm. Less well known is that back in August, the commodities giant sold $325 million of five-year unsecured bonds that included a provision that would offer higher interest rates if Mr. Corzine left the firm for a government job.

Jon Corzine
Getty Images
Jon Corzine

Given the lackluster share performance since Mr. Corzine took over, such covenants probably seem odd, but at the time of the debt sale, it was considered crucial to closing the transaction.

"Corzine was a huge selling point," said one of the senior bankers at Jefferies who brought the offering public. "It went from a deal that was not getting done, to a deal that got done."

So what happens if shareholders give Mr. Corzine's the boot? Well, according to that banker, an involuntary departure would not trigger the so-called Corzine covenants.

That might offer little solace to MF Global investors .

"Ironically, many of the same bond holders who wanted protection against Corzine going to DC may actually now want management change," said CNBC's Capital Markets Editor Gary Kaminsky.

Slideshow: 15 Companies with Zero Debt

Watch Options Actionon CNBC Fridays 5:00pm ET, Saturdays at 6a ET and on Sundays at 6a ET

Questions, comments send them to us at: optionsaction@cnbc.com

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Latest Video

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.

You Make the Call

  • Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.

  • Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.