Early Extinguishment of Debt

Early Extinguishment of Debt

The payment of a debt in full before it is due. Early extinguishment of debt is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise. As a result, some lenders attach prepayment penalties to loans to disincentivize early extinguishment. Early extinguishment of debt is also called prepayment, which has other meanings as well. See also: Prepayment risk.
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Financial Results In the second quarter 2015, Federal Realty generated funds from operations available for common shareholders (FFO) excluding early extinguishment of debt of $92.
That compares to a profit of $178 million, or 37 cents per share, in the first quarter of 2009, when Tenet recorded a $134 million gain from the early extinguishment of debt.
A company's early extinguishment of debt must clearly be infrequent in occurrence to receive extraordinary item treatment.
3 million after tax charge in early extinguishment of debt costs and restructuring expenses associated with the closure of its Glueckstadt, Germany cotton linter pulp plant.
4 million extraordinary loss on early extinguishment of debt.
2 million after-tax charge in the latest quarter was due to the early extinguishment of debt.
EBITDA is determined by adjusting net income for interest, taxes, gain on early extinguishment of debt, reorganization items, depreciation and amortization.
Included in the 2015 first quarter results is a gain on early extinguishment of debt of $2.
94, which expresses the SEC staff views about when a gain or loss should be recognized on the early extinguishment of debt.
A loss on the early extinguishment of debt of approximately $6 million (about $4 million after tax, or $0.
Included in the 2014 fourth quarter results is a loss on early extinguishment of debt of $9.
3 million and income on early extinguishment of debt of $1.
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