Refunding

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Refunding

Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.

Refunding

The act or practice in which a company repays a bond by making a new issue of another bond. That is, a company refunds a bond when it borrows more money to repay the money it already owes to bondholders. One may think of refunding as the company refinancing a bond.
References in periodicals archive ?
Exhibit 2: DeKalb County's Bond Ratings General Obligation Existing 2013 Issue Moody's Investors Service Aa3/Neg Aa3/Stable Fitch Ratings AA-/Stable Water and Sewer Existing 2013 Issue Standards & Poor's AA-/A+ AA-/A+ Moody's Investors Service Aa3/Stable Aa3/Stable Fitch Ratings AA-/Stable Exhibit 3: Final Results of DeKalb County's Bond Refunding Issuing Entity Refunding Par Realized NPV Savings DeKalb County $52,445 million $5,214,246 General Obligation 9.
8 million in cashflow savings resulting from the bond refunding through fiscal 2012.
If the bond refunding transaction is complete this year, it will reduce 2005 earnings by about $0.
Management applied approximately $650,000 per year in debt service savings from a 2002 bond refunding, in addition to annual operating surpluses, to replenish cash balances to approximately $8 million in fiscal 2004 from $1.
The 1996 bond refunding also stretches that issue's amortization by 10 years.
Jay Rollins, senior vice president of Newman Financial Services and managing director of the Structured Products Group said, "The transaction played to all of SPG's strengths: structured financing, multifamily property type, and a bond refunding exit strategy.
The general obligation bond refunding and the water revenue refunding bond issue are two examples of our continuing efforts to keep the costs low of delivering water to the 17 million people we serve," Thomas said.
A service contract bond refunding was undertaken earlier this month that refunded four authorizations and replaced four previous contracts with one contract.
The financing package, which is for a three year period and can be extended for an additional two years, is part of a tax-exempt bond refunding of a portfolio of twelve apartment complexes totaling 2,942 units in Florida, Georgia, South Carolina, Indiana and Iowa.
Simon Wadsworth, CFO, said that MAA anticipates completing a further tax free bond refunding on its St.