Make Whole Call Provision

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Make Whole Call Provision

A provision in some bond agreements allowing the issuer to redeem the bond before maturity if it gives bondholders a lump-sum payment equal to the net present value of coupons they would have received, had the bond not been called. A make-whole call provision allows the issuer to reduce the amount of debt on its balance sheet, if need be, while also limiting bondholders' risk.
References in periodicals archive ?
Terex will be paying the holders the principal amount, a premium which will be figured out under the make-whole provision of the indentures plus accrued interest of $35.
Many disputes are now resolved without going to trial; the controversial make-whole provision of the farm labor law is under review; and a 27 percent cut in the board's budget has been accepted without protest.
Company to Use Strong Cash Position at End of 2012 to Prepay Half of its $500 Million 8% Notes a Year Earlier Than Planned by Using Make-Whole Provision
The notes are callable by PepsiCo subject to a make-whole provision.
86% and may be retired prior to their scheduled maturity, subject only to a make-whole provision.
3m of the gross proceeds will be placed in an escrow account as a make-whole provision, to be released to pay the dividend and make-whole payment.
The notes are redeemable by CCE subject to a make-whole provision.
The notes are callable by CCE subject to a make-whole provision.
The notes are callable by Coca-Cola subject to a make-whole provision.
The notes may be retired before their respective scheduled maturity dates subject only to a make-whole provision.
The Series A-5 debentures may be redeemed by AIG at any time subject to a make-whole provision if certain changes rating agency actions occur or at par beginning in December 2012 or before that time upon the occurrence of a tax event.
5 percent Senior Notes maturing in 2020 in accordance with the contractual make-whole provisions.