Senior refunding

Senior refunding

Replacement by the issuer of securities with 5-to 12-year maturities with securities of 15-year or longer maturities, in order to delay, reduce, or consolidate payment.

Senior Refunding

The act of an issuer redeeming a bond by replacing it with a bond with a longer maturity. For example, a company may conduct a senior refund by redeeming its 10-year bonds and granting bondholders 30-year bonds. This is a useful tactic when a company wishes to delay payment or consolidate its debt.
References in periodicals archive ?
CHICAGO -- Fitch Ratings assigns an 'AA-' long-term rating to the Illinois State Toll Highway Authority's (the authority) toll highway senior refunding revenue bonds, 2010 series A-1 and A-2 (together, 2010 series), scheduled for negotiated sale on June 10, 2010.
17 /PRNewswire/ -- Unified School District's $23,600,000 senior refunding certificates of participation, series 1994A and $13,020,000 subordinate refunding certificates of participation, series 1994B (Brea-Olinda High School Refinancing Program) are removed from FitchAlert and affirmed at 'BBB' and 'BBB-', respectively, by Fitch Investors Service.
The respective 'BBB' and 'BBB-' ratings on the senior refunding and subordinate refunding certificates reflect satisfactory school district credit fundamentals as well as the likelihood of continued outside revenue support to help repay the certificates from commercial rents, tax increments and other monies derived from an existing retail shopping center and office park project.
3 million senior refunding revenue bonds series 2009B (to be sized and sold subject to tender) 'AA';
Additionally, 'AAA' ratings are affirmed on the corporation's following outstanding student loan asset-backed notes: $50,000,000 Student Loan Asset- Backed Notes, series 1995A-1 (Taxable Auction Rate Securities); $75,000,000 Student Loan Asset-Backed Notes, series 1995A-2 (Taxable Auction Rate Securities); $75,000,000 Student Loan Asset-Backed Notes, series 1995A-3 (Taxable Auction Rate Securities); $100,000,000 Auction-Rate Senior Refunding Notes, series 1994A (Tax-Exempt Auction Rate).
5 million senior refunding certificates of participation, Series 1994A, and 'BBB-' $12.
NEW YORK & CHICAGO -- Fitch Ratings assigns a rating of 'AAA/F1+' to the $766,200,000 The Illinois State Toll Highway Authority, toll highway variable rate senior refunding revenue bonds, 2008 series A consisting of $383,100,000 2008 series A-1 Bonds and $383,100,000 2008 series A-2 Bonds.
6 million 1994A Senior Refunding Certificates of Participation (COPs) and $13.
6 million in Northwest Parkway Public Highway Authority, CO (Northwest Parkway, or the authority) senior refunding revenue bonds series 2005A and series 2005B and the 'BB' rating on the authority's $218.
6 million senior refunding revenue bonds, series 2005A and series 2005B and other available sources will be used to refund all of the outstanding series 2001A senior bonds ($175.
The st ate has authorized and pledges long term senior refunding bonds to ultimately take out the notes.
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