extraordinary redemption

Extraordinary Redemption

A situation in which a bond issuer redeems a bond before its maturity because the revenue source paying the coupons disappears. For example, suppose a callable bond is issued to build a factory, and the revenue from the factory pays the interest on the bond. If the factory burns down, the company may redeem the bond at par so it no longer has to make interest payments. While the above example is catastrophic, most extraordinary redemptions occur for more mundane reasons; for instance, a mortgage-backed security may be extraordinarily redeemed if too many mortgages are refinanced. An extraordinary redemption is also called a special call.

extraordinary redemption

References in periodicals archive ?
A failed remarketing will cause an early termination of the Gas Purchase Agreement and the extraordinary redemption of the bonds.
Bondholders bear the most risk from the gas supplier as the structure calls for an extraordinary redemption of bonds under most scenarios of nonperformance by any entity participating in the structure.
Bondholders bear the most risk from the gas supplier as the structure calls for an extraordinary redemption of bonds, under most scenarios of non-performance by any entity participating in the structure.
Aron (backed by the GSG guaranty) is obligated to make required payments to CPEP, which will be sufficient to cover debt-service payments and ultimately the payment of the extraordinary redemption along with funds in the reserve accounts.
The system is required to apply connection fees not needed for payment of debt service or replenishment of the debt service reserve to extraordinary redemption of parity bonds.
The system is required to apply excess connection fees not needed for payment of debt service or replenishment of the debt service reserve for extraordinary redemption of parity bonds.
The trust indenture between Wells Fargo Bank and PACE that outlines certain commitments to bondholders, including extraordinary redemption of the bonds in the event of an early termination of the gas purchase agreement for any reason and the payment of swap netting payments prior to debt service.
The trust indenture between The Bank of New York Trust Company and Main Street that outlines certain commitments to bondholders, including extraordinary redemption of the bonds in the event of an early termination of the gas purchase agreement for any reason and the payment of swap netting payments prior to debt service.
Bank National Association (Trustee) and SCPPA that outlines certain commitments to bondholders, including extraordinary redemption of the bonds in the event of any early termination of the prepaid natural gas sales agreements, for any reason, and the establishment of a debt service reserve fund that is sufficient to protect bondholders from a project participant default;
The trust indenture between The Bank of New York Trust Company and Main Street that outlines certain commitments to bondholders, including extraordinary redemption of the bonds in the event of an early termination of the gas purchase agreement for any reason, the establishment of a customer insurance policy from XL that is sized sufficiently to protect bondholders from customer payment defaults, and the priority of debt service payments enjoy in lien status over that of the swap counterparty.
If the gas supplier does not perform (fails to deliver gas), MLCI (backed by the ML guaranty) is obligated to make required financial payments to the authority, which will be sufficient to cover debt service payments or ultimately a termination payment for an extraordinary redemption of the bonds.
The trust indenture between The Bank of New York Trust Company and IBB that outlines certain commitments to bondholders, including extraordinary redemption of the bonds in the event of any early termination of the gas purchase agreement, for any reason, and the establishment of a debt reserve fund that is sufficient to protect bondholders from customer payment defaults;

Full browser ?