Sinking fund requirement

Sinking fund requirement

A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.

Sinking Fund Provision

A provision in some bond indentures requiring the issuer to put money aside to repay bondholders at maturity. In bonds with such a provision, a fund or account is set up into which an issuer deposits money on a regular basis to repay the bond when it matures. See also: Sinking Fund Bond.
References in periodicals archive ?
In our example, the issuer could deliver the $25 million to the trustee with instructions to satisfy some future sinking fund requirement.
911% of par, the notes are unsecured, are not subject to any sinking fund requirement and include a redemption provision which allows the company to retire the bonds at any time prior to maturity with a make whole provision.
6 million of principal payments were remaining to complete the sinking fund requirement.
685% of par, the debentures are unsecured, are not subject to any sinking fund requirement and include a redemption provision which allows the company to retire the bonds at any time prior to maturity.
The notes are fully and unconditionally guaranteed by SYSCO Corporation, are unsecured, include a redemption privilege which allows the company to retire the notes at any time prior to maturity with a make whole provision and are not subject to any sinking fund requirement.
The total principal amount of $16,887,000 will be redeemed through a payment of $9,000,000 to satisfy the mandatory sinking fund requirement and an optional sinking fund payment of $7,887,000.
30% First Mortgage Bonds due July, 2022 by operation of the annual Sinking Fund requirement under its Indenture of Mortgage, as supplemented and modified.
The school district's unique daily sinking fund requirement for its debt payments strengthens credit quality because it spreads the district's expenses more evenly throughout the year and dramatically lessens the likelihood of total or substantial payment deficiencies that would have to be paid from state aid, which is vital to classroom operations.
The New Debentures will have no sinking fund requirement, but will rank senior in right of payment to, and will mature six months prior to, the Old Debentures.
Pala, the completed private placement transaction significantly strengthens the company's liquidity by eliminating the sinking fund requirement of the company's existing 10.
Priced at par, the notes are unsecured, not redeemable prior to maturity and not subject to any sinking fund requirement.
These debentures along with debentures previously acquired will be applied to the mandatory sinking fund requirements through October 1, 1999, and the balance of $13,000 will be applied to reduce the October 2000 sinking fund requirement.