Issuing a bond to retire an existing bond. see also advance refunding, funding, junior refunding, senior refunding, nonrefundable.
The replacement of existing securities using funds obtained from the issuance of new securities.
A redemption occurring immediately
a new security debt obligation replaces an old obligation in order to secure lower interest cost
The sale of a new issue, the proceeds of which are to be used to pay debt service on and retire an outstanding issue. The purpose of a refunding may be to save interest, extend the maturity of the debt or remove restrictive covenants in security documents.
A method of retiring an outstanding bond issue using the money from the sale of a new offering. This may occur prior to maturity or at maturity.
(1) Replacing an old debt with a new one, usually in order to lower the interest cost of the issuer. (2) In merchandising, returning money to the purchaser, e.g., to a consumer who has paid for an appliance and is not happy with it.
A system by which a bond issue is redeemed by a new bond issue under conditions generally more favorable to the issuer.
Refunding occurs when a new bond is issued to retire an outstanding bond issue.
A bond issue designed to provide funds that will be set aside for the retirement of outstanding bonds.
The retiring of a debt instrument by issuing a new debt instrument.
The redemption of a bond with proceeds received from issuing lower-cost debt obligations ranking equal to or superior to the debt to be redeemed.
The redemption of a bond issue by a new bond issue at conditions generally more favorable to the issuer.
The issuance of a new debt security (bond) using the proceeds to redeem older bonds at maturity or outstanding bonds issued under less favorable terms and conditions.
Retiring an outstanding bond issue at maturity by using money from the sale of a new offering.
Refunding occurs when an entity that has issued callable bonds calls those debt securities from the debt holders with the express purpose of reissuing new debt at a lower coupon rate. In essence, the issue of new, lower-interest debt allows the company to prematurely refund the older, higher-interest debt.
