The deferred-cash-payment bond and the reset note
were commonly used for these purposes.
The proceeds were used to retire a remarketed reset note
of the same amount.
By the terms of its Reset Note
agreement, the Company's annual interest rate for the securities increases by 100 basis points, from 11.
875 per cent subordinated reset notes
due 2023 (the "Notes") under its $7.
A combined maturity adjustment and distribution fee (which both DT and PCS deny exist) of 33 basis points for reset notes
or 34 basis points for non-reset notes
(assuming an eight-year term).
Remarketed reset notes
--GE Capital issued $500 million of remarketed reset notes
in late 1987.
In connection with the proposed refinancing, GXS also announced that it had reached an agreement, subject to the completion of the G International acquisition and the refinancing, with the holder of the reset notes
to amend certain terms of the reset notes
, including extending the maturity date to September 27, 2012 and fixing the interest rate at 12% per annum from September 27, 2003 through the date of the acquisition of G International.
In addition, prior to the close of the merger transaction, TXU Gas Company irrevocably deposited with the applicable trustees an aggregate of approximately $450 million for the defeasance of all of its outstanding debt securities, which are as follows: 7 1/8% Notes due June 15, 2005 ($150 million), Remarketed Reset Notes
due January 1, 2008 ($125 million) and Floating Rate Capital Securities ($150 million).
The outstanding senior notes of TXU Gas are rated 'AAA' upon the receipt of funds by the trustees for the defeasance of the 7 1/8% notes due June 15, 2004 ($150 million), the floating-rate capital securities ($150 million), and the remarketed reset notes
Additionally, Sallie Mae has proven to be very innovative, launching its first retail note program (EdNotes), making its first foray into the convertible market, developing reset notes
, and taking its securitization program to Europe.
Proceeds of the new notes will be used to redeem $200 million of floating-rate reset notes
and to refund outstanding commercial paper.
70% senior unsecured notes due 2005 BBB US$50 million remarketed reset notes
due 2007 BBB US$160 million 6.