paydown

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Also found in: Idioms.

Paydown

1. A payment on the interest and/or principal on a loan; debt service.

2. When a bond is called or matures and a new one is issued, the amount by which the face value of the old issue exceeds the face value of the new one. This represents a reduction in the issuer's debt. If a company pays out $10,000,000 in bond maturities and then issues $7,000,000 in new bonds, this is an example of paydown, because the company now has $3,000,000 less in debt.

paydown

In a corporate or U.S. Treasury refunding, the amount by which the face value of the bonds being refunded exceeds the par value of the new bonds being sold. The paydown represents the amount by which the debt is reduced.
References in classic literature ?
Then, after obtaining a verbal sanction from the prefect, and by paying down the money, I had several of these unfortunate creatures transported over to Aiguebelle, in Savoy, by night.
Wherefore the reverend father in God prays you, as his dear friends, to rescue him, either by paying down the ransom at which they hold him, or by force of arms, at your best discretion.
The site essentially "gamifies" user savings and paying down debt.
Brenner recommended the pay-down option, arguing that the town will save $750,000 by paying down debt, rather than giving taxpayers a one-time break on their taxes.
But when the corporate sector starts paying down debt while the household sector continues to save, a leakage to the income stream equivalent to the sum of household savings and corporate debt repayment is created.
If the client itemizes deductions, paying down a loan with deductible interest provides a risk-free rate of return effectively equal to the loan's interest rate minus the marginal rate of tax savings forgone.
Instead, Schwarzenegger has proposed dedicating the money to paying down transportation bond debt, including past bonds and those that will be submitted to voters in November.
This transaction also enabled us to strengthen our balance sheet by paying down our floating rate debt.
That depends on your circumstances," says Almond, "but in today's uncertain times, leveraging your business by carrying large loans may be risky, I've never seen anyone go bankrupt by paying down debt.
The President's budget proposal, by preserving future surpluses and paying down our national debt, makes an important contribution to raising national saving.
Twenty-two percent choose paying down debt as the top resolution, compared with 20 percent last year.
They have become suppliers of funds because so many companies are paying down debt.