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.
The simulation incorporates the possibility of slow passenger growth in the next few years and a severe traffic shock at the time of the loan's first
bullet repayment in 2009.
