paydown

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Paydown

1. A payment on the interest and/or principal on a loan; debt service.

2. When a bond is called or matures and a new one is issued, the amount by which the face value of the old issue exceeds the face value of the new one. This represents a reduction in the issuer's debt. If a company pays out $10,000,000 in bond maturities and then issues $7,000,000 in new bonds, this is an example of paydown, because the company now has $3,000,000 less in debt.

paydown

In a corporate or U.S. Treasury refunding, the amount by which the face value of the bonds being refunded exceeds the par value of the new bonds being sold. The paydown represents the amount by which the debt is reduced.
References in periodicals archive ?
Over half of the participants reported that SaveUp motivated them to save money and pay down debt.
It shows that the government, acting as the borrower of last resort, kept both the level of economic activity and money supply from shrinking in the face of massive nationwide effort by the companies to pay down debt.
SAN FRANCISCO -- As homeowners continue to express their desire to pay down debt and focus on saving for the future, Wells Fargo & Company (NYSE:WFC) announced today it has expanded its Wells Fargo Cash Back(SM) Card program to give eligible customers the ability to pay down their home equity principal.
Although the pork-barrel politicians (or their opponents, for that matter) never understood what they were actually doing, by keeping the economy stable, they have allowed companies to pay down debt so much that, for most companies, their job of repairing balance sheets will be finished in just a few more years.
Consumers would be doing themselves a big favor by using that money to pay down credit card debt,'' said Lilia Mojica, national outreach director at Springboard, a nonprofit consumer credit counseling agency based in Riverside.
Bankers worry about refi customers who take out the cash, pay down their credit cards but continue to spend, creating a debt bubble without the safety net of home equity the next time.
Despite the partial pay down of the Colonnade loan (52.
In other words, it appears we can afford to pay down the debt and provide some much-needed tax relief.
Looking forward, Fitch expects the utility system to continue with further accelerated debt pay down.
In the event that any of these tests are not met, payments will be made on a pro rata basis (except for the senior coverage test, pursuant to which payments are made first, to the class A-FP and A-1 notes and second, to the class A-FP and A-2 notes) to pay down the principal amount of the notes included in the coverage test until the failing coverage test is cured.
The truth is, you can't lock-box Social Security revenues and pay down the national debt at the same time.
All principal collections first will be used to pay down the class A-1 notes until their outstanding balance is zero.