Bullet Repayment

Bullet Repayment

1. A way to structure the repayment of a loan in which the borrower does not pay the principal over the life of the loan, but rather makes a lump sum payment at maturity. This is relatively common in mortgage loans; the borrower pays the interest each month and refinances the house in order to make the bullet repayment at the end of the mortgage term.

2. The lump sum payment in a bullet repayment structure.
References in periodicals archive ?
Annual retention of dividends from DE of EUR5 million-EUR7 million will partially fund the bullet repayment of the bond at maturity in 2021, and the expected EUR25 million-EUR35 million shortfall will not represent refinancing risk until closer to maturity.
Consumers have the option to either make part prepayments towards the principal amount as and when the financial situation allows to do so, or can opt for bullet repayment.
625%, which will be repayable with a bullet repayment of the principal on maturity.
For example, take a five-year loan with bullet repayment, what is the difference between bank X and bank Y?
Earlier, gold loans had a tenure of one year and were repaid in one bullet repayment along with interest.
The long-term tranche also includes a bullet repayment feature at the end of the 39 year term.
The facility, which carries a margin of 75 basis points per annum over Libor (London Inter-bank Offered Rate), has a bullet repayment at the end of the two-year tenor.
For example, large annual amortisation payments will restrict cash available for reinvestment into growth or acquisitions, so a bullet repayment structure is more likely to be appropriate.
Term and Redemption method 3 years Bullet repayment i Maturity date October 18, 2013 ii Retirement by purchase Unless otherwise stipulated by the book-entry transfer institution, the Company may repurchase the bond on or after the day after the payment date.
The deal is to follow a bullet repayment structure and would carry a margin of 130 basis points (bps) over EURIBOR.
However, this requires regular payments, starting in December, 2009, culminating in a bullet repayment of pounds 13m, in January, 2012.