call premium

Call premium

Premium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date.

Redemption Premium

Money over and above the face value of a callable bond that the issuer pays to bondholders if the bond is called. A callable bond is a bond that the issuer is permitted to redeem or repay before the maturity date, depriving the bondholder of future coupon payments. Usually the issuer does this if it can reissue the same amount of debt at a lower interest rate. The redemption premium exists to compensate bondholders for some of their lost interest payments. It is especially useful if they can only reinvest in securities with a lower return rate. The redemption premium is also called the call premium.

call premium

The difference between the principal amount of a security and the price at which the security can be called by the issuer. During the first few years a call is permitted, the premium is generally equal to one year's interest. Thereafter, the premium gradually declines to zero at maturity. Calls for sinking fund requirements are usually made at par rather than at a premium. Also called redemption premium.
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0 million related the refinancing, representing the call premium on the Notes and the write-off of unamortized deferred financing costs.
This was accomplished through the payment, including a call premium plus all accrued interest, of approximately $161 million in cash.
The total cash paid was $218 million, and included a call premium of 5.
1 million for the Notes call premium and $6 million for deferred financing costs related to the original issuance of the Notes.
0 million during the first quarter of fiscal 2007 in connection with this action, including call premium costs, write-off of bond issue costs and costs associated with the termination of derivatives related to the senior secured notes.
Bondholders will receive the principal amount of the note, accrued interest up to the date of redemption and the call premium.
The escrow deposit is sufficient to fully repay bondholders, issuance costs and a 2% call premium if necessary due to redemption of the bonds.
The proceeds were used to fund a significant portion of the redemption of all of its $700 million outstanding 8 1/2% debentures due in May 2006 and the related call premium.
Metris also paid a call premium of 4% of the principal amount prepaid, or $6 million, plus accrued interest of approximately $210,000, to the holders of the notes.
From a cash earnings-per-share perspective in 2007, the redemption is expected to be neutral, as the significant savings in interest expense will be offset by the call premium and lower interest income on cash balances.
In the first section, we demonstrate that issuing repurchasable debt is tax preferred to issuing callable debt with a fixed call premium.
Such excess would be allowed only to the extent it does not exceed a normal call premium under Regs.