Repricing


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Repricing

To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices.

Repricing

The act of a manager or other high level employee exchanging an out-of-the-money stock option in the company for an at-the-money stock option. Companies issue new at-the-money options and make the exchanges in order to reward the employee and/or to provide an incentive for the employee to continue to perform well even when the company's stock price has declined.

repricing

The exchanging of newly issued incentive stock options priced at the current market price for previously granted options that are out-of-the-money. Repricing rewards managers of companies with stock prices that have declined.
References in periodicals archive ?
First, it could be argued that the repricing program did indeed provide the needed motivation to employees, and as a result of their increased efforts, the performance of the company was enhanced.
Of course, the shareholders do not enjoy the same benefits created by repricing, resulting in criticism by some shareholder groups.
Currently, repriced options only require an accounting charge if the new exercise price is less than the fair market value (FMV) of the stock on the date of the repricing. However, under the new interpretation, repriced options will require variable accounting until the date the option is exercised.
(NYSE: WEX), a provider of corporate payment solutions, has announced that it has invited certain prospective lenders to a meeting scheduled for January 8, 2018 for the purpose of considering potential amendments to its credit facility, including a repricing of the company's existing USD 1.185 billion Term Loan B and a potential USD 100 million increase to its Term Loan B, the company said.
"However, we have to consider the upward pressure on rates as the quarterly repricing of Malampaya becomes fully reflected in the power bills of natural gas plants," he noted.
Summary: Rate hikes support repricing of loans, improve interest margins
Higher funding costs will soften Omani banks' profitability as rising US interest rates will outweigh higher lending rates from banks' loan repricing, Moody's Investor Service said.
Treasury yields have followed suit to lows and the yen is near session highs amid risk-off repricing.
'Since May, there [has been] almost a 100 basis point increase in the policy rate so it's [the T-bond] just catching up, just repricing,' National Treasurer Rosalia V.
M2 EQUITYBITES-June 27, 2018-DXP Enterprises closes debt repricing transaction and lowers cash interest expense by about USD1.9m
Global Banking News-June 27, 2018-DXP Enterprises closes debt repricing transaction and lowers cash interest expense by about USD1.9m
The repricing of the term loan which matures in 2024 reduces the interest rate from LIBOR plus 4.75% to LIBOR plus 4.25% per annum and reduces the LIBOR floor from 1% to 0%.