Refunding

(redirected from Debt refunding)
Also found in: Legal.

Refunding

Redeeming a bond with proceeds received from issuing lower-cost debt obligations with ranking equal to or superior to the debt to be redeemed.

Refunding

The act or practice in which a company repays a bond by making a new issue of another bond. That is, a company refunds a bond when it borrows more money to repay the money it already owes to bondholders. One may think of refunding as the company refinancing a bond.
References in periodicals archive ?
Expenditure growth was limited through savings related to a switch to self-funded health insurance, lowered energy costs, and debt refunding savings.
Other items under consideration include debt refunding that would provide fiscal relief as well as a request of the federal government to accelerate the use of $80 million of fiscal stabilization funds into FY 2010 from FY 2011, which would ease cash flow but would not have an impact on reducing the budget shortfall.
A debt refunding undertaken by the county in 2007 restructured both county and improvement authority outstanding debt by changing from declining to level debt service payments over the medium term.
The county has budgeted approximately $800,000 in debt services savings from this debt refunding in 2009 as well.
However, the series 2006A and series 2006B debt refunding and restructuring continues the authority's efforts beginning in 2004 to incrementally establish a more level debt service profile.
Following the issuance of the series 2006 bonds and the debt refunding, UMass will have approximately $1.
Although debt refunding issues this year will restructure some principal maturities, overall debt amortization remains rapid at 88% in 10 years.
The possible revenue shortfalls include $350 million in receipts from debt refunding and asset sales.
However, the series 2004 debt refunding and restructuring provides incremental annual savings through the medium term.
Adjustments included an unscheduled 2-cent increase in the motor fuel tax, the enlargement of bonding authority, and debt refunding.
The authority is also evaluating debt refunding and restructuring options over the near to medium term that include leveling out the senior debt service profile and retiring the vehicle registration fee bonds.
Although debt refunding issues last year restructured some principal maturities, overall debt amortization remains rapid at 81% in ten years.