Balloon maturity

Balloon maturity

Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement.

Balloon Maturity

A provision in some bond agreements in which a large number of bonds comes due at the same time, usually at maturity. Balloon maturity occurs only in bonds without a sinking fund provision; rather than retiring part of the principal at different times, balloon maturity returns most or all of the principal on a single date. Issuers of bonds with balloon maturities can have difficulty in repayment if they have not set aside a sufficient amount of money.
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Morningstar cited a large number of loans that are current but may default in coming months since they may not be able to secure adequate take-out financing at balloon maturity.
The delinquency rate is expected to rise in coming months, however, as the 2007 vintage loans that were originated under the weakest underwriting standards start to reach their five-year balloon maturity dates.
Specifically, we refinanced our existing 2005 credit facility under favorable terms and ahead of the $600 million balloon maturity in October 2012.
2 million 2010 non-housing TAB BANs structured with a balloon maturity in fiscal 2017.
We also cannot rule out additional store consolidation, closings and potential bankruptcies along with growing balloon maturity default risk as retail collateral continues to suffer from the experienced decline.
Concerns include the limited seasoning of the mortgages, the fact that 100% of the mortgages have a balloon payment coupled with the extension advisor concept and the balloon maturity concentration, with 91.
The BAN was structured with a balloon maturity in fiscal 2017.
Also considered in analyzing these classes were: California's recessionary economy (60% principal concentration) shows signs of stabilization; 15% of expected losses are due to earthquake damage not likely to reoccur in the near term; and 94% of the loans have fixed rates or rates with low caps, so the current rise in interest rates should not, of itself, trigger loan defaults prior to balloon maturity.
Unlike ARMs - another low-cost alternative to fixed-rate mortgages (FRMs) - a borrower's monthly payments are known with certainly, out until the balloon maturity date, from the moment the loan is originated.
Society previously agreed to a five year extension on an $8,000,000 Segment "B" Note at a fixed interest rate of 8 1/2 percent, with a fifteen year amortization schedule and a balloon maturity of Dec.
Assuming a $17 million planned borrowing, MADS (excluding a $9 million balloon maturity on a bank note due in 2014) as percent of revenues amounts to 3.
The notes have a balloon maturity due on March 1, 2014 with semiannual interest payments due on each March 1 and Sept.