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Sinking Fund Bond |
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Sinking Fund Bond A bond with a fund or account into which an issuer deposits money on a regular basis to repay the bond when it matures. For example, if a company issues a bond with a balloon maturity of seven years, one may put money into a bond sinking fund for seven years in order to be ready to pay off the principal when it comes due. Some bonds have sinking fund provisions, requiring the issuer to put money aside to repay bondholders at maturity. See also: Sinking Fund Call.
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the "Company") today announced that the Company has fully redeemed its 12% Sinking Fund Bonds due December 31, 2007, which had an outstanding principal balance of $9,036,000, at their regular redemption price of 102% of par ($1,020. Conventional sinking fund bonds typically make annual sinking fund payments, which commence after some grace period: |Mathematical Expression Omitted~ during the grace period; |Mathematical Expression Omitted~, a positive constant, on each sinking fund date, with a balloon payment |Mathematical Expression Omitted~ (with S* possibly equal to S) on the maturity date; and |Mathematical Expression Omitted~ for all other dates. Norman Swanton, the Chairman and Chief Executive Officer of the Company noted that "the retirement and redemption of both our outstanding 12% Sinking Fund Convertible Bonds due 2017 and our outstanding 12% Sinking Fund Bonds due 2007, having a combined outstanding balance of $14. |
Sinking Fund Bonds |
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