first call date

First call date

A date stated in an indenture that is the first date on which the issuer may redeem a bond either partially or completely.

First Call Date

The first date on which a callable bond or other fixed income security may be called. A callable bond allows the issuer to redeem the bond before maturity. When the bond is called, the bondholder receives the par value and does not receive any more coupons. Callable bonds are issued to allow the issuers to hedge against interest rate risk. That is, if interest rates lower significantly, they can call the bond and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also include a first call date, which guarantees the current interest rate for a certain period of time. The first call date is included in the bond agreement. See also: Doomsday call, Yield to first.

first call date

The earliest date on which a security may be redeemed by the issuer. This date is particularly important to an investor who holds a security that is selling above or near its call price. The first call date is likely to be either five years or ten years after the date of issue; however, the timing varies by bond issue. Information regarding the first call date may be found on the bond certificate or it may be obtained from the brokerage firm holding the security. Bonds selling at a premium are often quoted at the yield to first call. See also yield to call.
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250% until but excluding December 9, 2021, which is the first call date of tranche 1, and tranche 2 will bear a fixed interest coupon of 6.
In addition to evaluating whether insurance is cost-effective for a specific bond maturity, MINER provides analytics to compare different insurance-premium structures, including the traditional method of paying the entire premium up-front or paying a smaller up-front premium followed by annual payments commencing on the first call date.
The securities are perpetual, with a first call date in 2020.
The coupon will be fixed at 4% until the first call date and floating thereafter.
The profit rate per year is payable semi-annually in arrear until the first call date in 2019, bankers familiar with the details said.
The issue of or exchange of the buffer capital notes (BCNs) will occur no earlier than October 2013, which is the first call date of the Tier 1 Capital Notes, and is subject to the implementation of Swiss regulations requiring Credit Suisse Group to maintain buffer capital and receipt of all required consents and approvals from Credit Suisse Group's shareholders, including approval for additional conditional capital or conversion capital.
Permitted remedial actions include redemption of the portion of the outstanding tax-exempt bonds or, if the bonds cannot be redeemed within 90 days of the change of use, immediately defeasing those bonds followed by redemption at the first call date.
They use a theoretical, tax-timed, bond-pricing model and show that a comparison of callable bonds with non-callable bonds that mature on the first call date provides a valuation for an implied put option.
Rather than just wait until this high coupon debt could be refunded on a current basis and hope that rates would stay low or go lower, the authority began looking for ways to hedge the then-low current rates until a current refunding could be done at the first call date.
The release date is not expected to occur prior to May 2011 unless outstanding FMBs are redeemed before the first call date by a tender offer so that the remaining FMBs outstanding are less than 5% of DECO's net tangible assets or net capitalization.
S&P will assign an intermediate equity content as of the point when the Issuer can no longer use the acquisition event to redeem the Bonds before the first call date.
MAF Holding can also redeem them for cash as of the first call date, which is not expected to be before 2018, and on defined dates thereafter.

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