floating-rate note

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Related to Floating Rate Notes: zero coupon bond, Libor

Floating-rate note (FRN)

Floating-Rate Note

A bond with a variable interest rate. These bonds typically have coupons renewable every three months and pay according to a set calculation. For example, a note may have an interest rate of "EURIBOR + 1%" and pay whatever the EURIBOR rate happens to be at the time plus 1%. Some FRNs have maximum and minimum interest rates, known as capped FRNs and floored FRNs, respectively. An FRN with both a maximum and a minimum interest rate is called a collared FRN. In the United States, government sponsored enterprises issue most FRNs while banks do the same in Europe. See also: Adjustable-rate mortgage.

floating-rate note

An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a predetermined formula. Floating-rate notes usually can be redeemed at face value on certain dates at the holder's option. Floating-rate notes pay short-term interest and generally sell in the secondary market at nearly par value. Floating-rate notes are indicated in bond transaction tables in newspapers by the symbol t. Also called floater, variable-rate note. See also convertible floating-rate note, droplock bond, variable-rate demand obligation, yield curve note.
References in periodicals archive ?
EUR25,000,000 junior super senior B secured floating rate notes due 2013, 'AAA';
7,500,000 class X first priority senior secured floating rate notes due 2016 'AAA';
276,106,781 class A-1 first priority senior secured floating rate notes due 2039, 'BBB' placed on Rating Watch Negative;
26,799,000 class B4 Floating Rate Notes, Due February 2039 'A+';
36,250,000 class A-2 Floating Rate Notes Due 2047 'AAA';
USD34,000,000 class S senior secured floating rate notes due 2014 'AAA';
US$5,000,000 class C fourth priority senior secured floating rate notes due 2046 'AA-';
6,688,729 class C mezzanine secured floating rate notes affirmed at 'A-';
25,000,000 class B fourth priority secured deferrable floating rate notes due 2041 'AA';
275,000,000 class A-1B First Priority Senior Secured Revolving Floating Rate Notes Due November 2046 'AAA';
and Hexion Nova Scotia Finance, ULC, sold $200 million of Second-Priority Senior Secured Floating Rate Notes due 2014 and $625 million of 9E3/4% Second-Priority Senior Secured Notes due 2014 (together the eIuNew NoteseIN).
New York City time, on October 24, 2006, tenders and consents from holders of (i) 100%, of the outstanding principal amount of Second-Priority Senior Secured Floating Rate Notes due 2010 (CUSIP No.