redemption premium

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Redemption Premium

Money over and above the face value of a callable bond that the issuer pays to bondholders if the bond is called. A callable bond is a bond that the issuer is permitted to redeem or repay before the maturity date, depriving the bondholder of future coupon payments. Usually the issuer does this if it can reissue the same amount of debt at a lower interest rate. The redemption premium exists to compensate bondholders for some of their lost interest payments. It is especially useful if they can only reinvest in securities with a lower return rate. The redemption premium is also called the call premium.

redemption premium

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Payments to the trustee, including call premiums and accrued interest, of approximately $243 million regarding the Senior Notes and $162 million regarding the Convertible Subordinated Notes, will be made in January 2006.
Thus, tax reasons imply that issuing repurchasable debt and/or BIPOs dominate issuing callable debt with a schedule of fixed call premiums.
This was primarily due to three distinct cash applications: an approximately $32 million pension contribution; approximately $31 million of call premiums, fees and accrued interest related to the company's successful $1 billion refinancing and the related early extinguishment of the 12.
5 million for call premiums and to write off deferred debt issuance costs.
However, differential taxable call premiums in call prices may lead to a violation of this condition.
com educates subscribers on the C-A-N-S-L-I-M method of investing which includes using company Fundamentals to qualify stocks; Chart Formations to time stock picks; and Covered Call Premiums to generate income and lower the break-even price.
government securities in an irrevocable trust to cover principal, call premiums and interest to the call dates.
The company expects to record a fourth quarter 2004 pretax charge of approximately $22 million for call premiums and to write off deferred debt issuance costs.
s existing 7 7/8 Series B Senior Notes due in 2008 and to pay applicable call premiums.
The company expects to record a second quarter 2004 pretax charge of approximately $12 million for call premiums and to write off deferred debt issuance costs.
The company expects to record a first quarter 2004 pretax charge of approximately $11 million for call premiums and to write off deferred debt issuance costs.
These charges will be the result of the write off of costs associated with the expected retirement of the notes and repayment of the existing credit facilities, inclusive of deferred financing costs and call premiums.