Bullet Repayment

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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 ?
5 per year without the requirement to repay the loan principal for the first four years, followed by bullet repayments at the end of year four (15 per cent) and year five (85 per cent).
Furthermore, the Company's ability to meet the bullet repayments on the IMTN and other borrowings hinges on the disposal of the office tower.
The new loans would be structured with bullet repayments -- meaning the main amount would not be due until the end of the term -- and interest rates would also be low so as not to burden the group's cashflow with interest payments, the source added.
for refinancing prior to the bullet repayments in March 2011.
All of KLCC REIT's existing financings will be refinanced with the proposed sukuk, which is expected to result in a more spread out debt maturity profile with smaller bullet repayments.
Based on its 12- to 18-month forward-looking liquidity analysis, Moody's highlights that GCC issuers' prospects in 2012 will be determined by factors such as their ability to roll over short-term maturities (less than one year), address upcoming bullet repayments and improve their operating performance.
It also recognises the uncertainties related to large restructurings, particularly in the context of non-commercial interest rates, bullet repayments or as-yet-untested corporate cash flows.