98% during the same periods in 2016 (excluding three and five basis points of benefit related to the aforementioned
call premiums in the three- and twelve-month periods of 2016, respectively).
05% Senior Notes, to pay the associated
call premiums, to repay indebtedness outstanding under its Term Loan Credit Agreement, its Revolving Credit Agreement and its commercial paper program, and for general corporate purposes.
President and CEO, David Baumgarten, said, 'We are certainly pleased with the improvement in our net interest income, which was driven by continued growth in our earning assets and modest expansion of our net interest margin, excluding the consideration of
call premiums in prior periods.
These debentures will be subordinated to all other funded debt of the company and will be callable, in whole or in part, at any time at its option, subject to declining
call premiums during the first five years.
Fortunately, we were able to reconfigure our portfolio into more fixed income securities and generate substantial
call premiums during the quarter.
This regression shows that the earlier call dates nearly offset the negative effects of the higher
call premiums in the speculative-grade sector: Holding constant the effects of maturity, only the Aa-rated bonds have a significantly higher option value than that of the B-rated bonds.
This was primarily due to three distinct cash applications: an approximately $32 million pension contribution; approximately $31 million of
call premiums, fees and accrued interest related to the company's successful $1 billion refinancing and the related early extinguishment of the 12.
375% senior subordinated notes due 2020 and pay the associated
call premiums as well.
interest and
call premiums, if any, on the Refunded Bonds;
Thus, tax reasons imply that issuing repurchasable debt and/or BIPOs dominate issuing callable debt with a schedule of fixed
call premiums.
The aggregate amount paid to the Note holders for the redemption,
call premiums and accrued interest through January 6th was $34.
Proceeds combined with cash on hand will refinance the currently callable part of each of its outstanding corporate-level senior secured notes together with about USD590m of principal, accrued interest, fees and
call premiums and retire its project-level BRSP term loan facility that includes the repayment of about USD218m of principal as well as accrued interest and fees.
