Pay-down

Pay-down

In a Treasury refunding, the amount by which the par value of the securities maturing exceeds that of those sold. In the context of general equities, paying a lower price in an accumulation of stock. Antithesis of pay-up.

Paydown

1. A payment on the interest and/or principal on a loan; debt service.

2. When a bond is called or matures and a new one is issued, the amount by which the face value of the old issue exceeds the face value of the new one. This represents a reduction in the issuer's debt. If a company pays out $10,000,000 in bond maturities and then issues $7,000,000 in new bonds, this is an example of paydown, because the company now has $3,000,000 less in debt.
References in periodicals archive ?
Brenner recommended the pay-down option, arguing that the town will save $750,000 by paying down debt, rather than giving taxpayers a one-time break on their taxes.
Finally, customers can transfer "What's Left" to the principal balance of the new loan to accelerate the pay-down.
The parent debt pay-down is being funded with proceeds from diversified asset sales, including $1.
The rating upgrades are primarily the result of defeasance, as well as increased credit enhancement (CE) due to collateral pay-down.
Based on this pay-down rate, the class A3 would be paid off within 24 months.
I'm pleased with the Company's preliminary same-store sales and debt pay-down results for the second quarter," said Chris Pappas, president and CEO.
Associates") to allow for a pay-down, using approximately $5.
The net proceeds received by ILA from any sale of the Canadian assets must be used to pay-down the Facility, irrespective of the pledge status of these assets.
Joshua Tree and American Health also reached agreements relating to the provision of working capital by Joshua Tree to American Health after the acquisition, the pay-down by Joshua Tree of American Health's outstanding bank debt to Hudson United Bank in the amount of $3.
As part of the extension, the Company has agreed to make an immediate $5 million pay-down against the amortizing term loan.
Fitch's analysis also accounted for the possibility of a pay-down of approximately $2.
1 billion inter-company loan it provided to Enersis in 1999, while allowing Enersis to pay-down the loan over time with future equity issues.