Make Whole Call Provision

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Make Whole Call Provision

A provision in some bond agreements allowing the issuer to redeem the bond before maturity if it gives bondholders a lump-sum payment equal to the net present value of coupons they would have received, had the bond not been called. A make-whole call provision allows the issuer to reduce the amount of debt on its balance sheet, if need be, while also limiting bondholders' risk.
References in periodicals archive ?
5 percent Senior Notes maturing in 2020 in accordance with the contractual make-whole provisions.
The company added that it intends to redeem any and all notes that are not tendered and accepted in the tender offer in accordance with the make-whole provisions under the indenture governing the notes.
200% Senior Notes due March 15, 2019 validly tendered and accepted for payment in Pfizer's previously announced tender offer and to fund the redemption of any of the tender notes that remain outstanding after the completion of the tender offer in accordance with the terms of the make-whole provisions of the indenture governing the tender notes.