floating-rate note

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Floating-rate note (FRN)

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Floating-Rate Note

A bond with a variable interest rate. These bonds typically have coupons renewable every three months and pay according to a set calculation. For example, a note may have an interest rate of "EURIBOR + 1%" and pay whatever the EURIBOR rate happens to be at the time plus 1%. Some FRNs have maximum and minimum interest rates, known as capped FRNs and floored FRNs, respectively. An FRN with both a maximum and a minimum interest rate is called a collared FRN. In the United States, government sponsored enterprises issue most FRNs while banks do the same in Europe. See also: Adjustable-rate mortgage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

floating-rate note

An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a predetermined formula. Floating-rate notes usually can be redeemed at face value on certain dates at the holder's option. Floating-rate notes pay short-term interest and generally sell in the secondary market at nearly par value. Floating-rate notes are indicated in bond transaction tables in newspapers by the symbol t. Also called floater, variable-rate note. See also convertible floating-rate note, droplock bond, variable-rate demand obligation, yield curve note.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The floating rate notes will bear interest at a floating rate, reset quarterly, equal to three-month LIBOR plus 0.430 percent per annum, payable quarterly on February 1, May 1, August 1 and November 1 of each year, beginning on February 1, 2019.
NORDIC BUSINESS REPORT-March 20, 2019-Arise amends terms and conditions pertaining to its senior secured green floating rate notes 2018/2021
Global Banking News-March 20, 2019-Arise amends terms and conditions pertaining to its senior secured green floating rate notes 2018/2021
M2 EQUITYBITES-March 20, 2019-Arise amends terms and conditions pertaining to its senior secured green floating rate notes 2018/2021
The mismatch between the fixed-rate loans (99.8%) and the floating rate notes is hedged through a swap agreement.
The Floating Rate Notes were sold at 100 percent of par and the Fixed Rate Notes were sold at a price of 99.704 percent of par.
EUR400,000,000 Floating Rate Notes due 11 February 2015 (ISIN:
Also, NXP announced that it intends to issue redemption notices for all USD362m outstanding of its 7.875% senior secured notes due 2014, together with USD100m of its US dollar-denominated floating rate notes due 2013 and USD200m of its Euro-denominated floating rate notes due 2013.
Madrid/London: Fitch Ratings has placed nine Greek structured finance tranches on Rating Watch Positive (RWP) and upgraded Aeolos S.A.'s floating rate notes. A full list of rating actions is at the end of this commentary.
M2 EQUITYBITES-October 31, 2018-TD Ameritrade prices offering of USD400m senior notes and USD600m senior floating rate notes