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 periodicals archive ?
9 percent of GDP in 2000, responded by paying down debt to the tune of 1.
In addition, a small return on a low-risk investment in a 529 plan combined with the immediate return from the state tax savings provides a better after-tax return than paying down any remaining debts.
Thirty-three percent of those age 25-34 say paying down debt is their number one resolution
Their turnaround not only provided jolts to all the other companies to finish paying down debt as fast as possible, but also the bulk of good corporate news that has been coming out of Japan recently.
Koizumi's reluctance to use sufficient fiscal stimulus to fill the gap when companies are still paying down debt has been the single most important reason for economic weakness in Japan.
McKeon admits it himself when he states: ``under the lock-box bill, until a reform plan is developed (for Social Security), then the money goes into paying down the $5.
In the past, STZ has been very successful at finding synergies and paying down debt with its strong cash flow generating assets.
Under the Lock Box bill, until a reform plan is developed, then the money goes into paying down the $5.
The rating action reflects the significant improvement the company has made in paying down debt, the successful divestment of TODCO, the success of the company in capitalizing on current market conditions and the resulting visibility the company's contracts provide in future free cash flow (cash from operations less capital expenditures).
Although Jouett revealed no details of either proposed bid, the Associated Press reported Parillo would offer nearly $30 million for the park, in addition to taking over payments of the $55 million debt that Marine World has been paying down at the rate of $3.
Upon the breach of a coverage test as outlined in the security agreement, the notes will start the process of paying down principal sequentially beginning with class A-1 principal.
Upon the breach of a coverage test as outlined in the indenture, the notes will start the process of paying down principal sequentially beginning with class A-1 principal.