Bullet Repayment

Bullet Repayment

1. A way to structure the repayment of a loan in which the borrower does not pay the principal over the life of the loan, but rather makes a lump sum payment at maturity. This is relatively common in mortgage loans; the borrower pays the interest each month and refinances the house in order to make the bullet repayment at the end of the mortgage term.

2. The lump sum payment in a bullet repayment structure.
References in periodicals archive ?
The bank said, FGB will be paying 70 bps/annum above USD LIBOR and has a bullet repayment at the end of the 3 year phase.
For example, large annual amortisation payments will restrict cash available for reinvestment into growth or acquisitions, so a bullet repayment structure is more likely to be appropriate.
Term and Redemption method 3 years Bullet repayment i Maturity date October 18, 2013 ii Retirement by purchase Unless otherwise stipulated by the book-entry transfer institution, the Company may repurchase the bond on or after the day after the payment date.
The deal is to follow a bullet repayment structure and would carry a margin of 130 basis points (bps) over EURIBOR.
However, this requires regular payments, starting in December, 2009, culminating in a bullet repayment of pounds 13m, in January, 2012.
The New Facility will have a bullet repayment on June 30, 2009 and will have substantially the same terms as the existing Bank Facility.
In the proposed structure, MTN would issue an eight-year floating-rate bond in Ugandan shillings with a bullet repayment.
The next debt amortization is not until the 2020 bullet repayment of BRL400 million.
The facility has a bullet repayment at the end of the three-year tenor.
The carrier would choose to have a bullet repayment for this facility or a suitable moratorium period for repayment of principal amount under this facility.
this financing will be due for bullet repayment in September 2028.