floating-rate note

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Floating-rate note (FRN)

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.

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.
References in periodicals archive ?
LC Inc.'s net cost after the swap agreement would be a variable rate of 6-month LIBOR plus 3.1%, which is 30 basis points lower than if they directly issued a floating rate note of 6 month LIBOR + 3.4%.
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.
Simpson Thacher recently represented SMBC Nikko Securities America, Inc., as sole bookrunner, in connection with Sumitomo Mitsui Banking Corporations (SMBC) reopening of its senior floating rate notes due 2020 originally issued in January 2018 under SMBCs US$50 billion Global Medium Term Notes Program.
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