The proposed refinancing is expected to include changes to the pricing terms of the existing credit facility to reflect more favorable current market pricing, a one year maturity date extension and a six month extension of the call protection period
for lenders from the effective date.
Between 1982 and 1992, there were 31 bonds issued with no call protection and 947 bonds issued with an absolute call protection period.
3 Bonds with a Call Protection Period Number of Issues 441 Number of Firms 237 Amount Issued (Million $) 100.
Generally (keeping the call protection period
constant), the longer the maturity, the greater the option value as there is more opportunity for interest rates to decline to permit profitable exercise.
Metropolitan may optionally call the bonds at any time after the initial call protection period
of six months.
Under the proposed refinancing, all of the terms of the existing credit facility would remain the same, except that the pricing terms would be changed to reflect more favorable current market pricing and the call protection period
for lenders would be extended from October 15, 2013 to December 31, 2013.
The consent solicitation has been modified to offer holders a two-year extension of the call protection period
so that such period would end on April 20, 2011 rather than April 20, 2009.