Sinking fund requirement

Sinking fund requirement

A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.

Sinking Fund Provision

A provision in some bond indentures requiring the issuer to put money aside to repay bondholders at maturity. In bonds with such a provision, a fund or account is set up into which an issuer deposits money on a regular basis to repay the bond when it matures. See also: Sinking Fund Bond.
References in periodicals archive ?
In our example, the issuer could deliver the $25 million to the trustee with instructions to satisfy some future sinking fund requirement.
911% of par, the notes are unsecured, are not subject to any sinking fund requirement and include a redemption provision which allows the company to retire the bonds at any time prior to maturity with a make whole provision.
The notes are fully and unconditionally guaranteed by SYSCO Corporation, are unsecured, include a redemption privilege which allows the company to retire the notes at any time prior to maturity with a make whole provision and are not subject to any sinking fund requirement.
The school district's unique daily sinking fund requirement for its debt payments strengthens credit quality because it spreads the district's expenses more evenly throughout the year and dramatically lessens the likelihood of total or substantial payment deficiencies that would have to be paid from state aid, which is vital to classroom operations.
These debentures along with debentures previously acquired will be applied to the mandatory sinking fund requirements through October 1, 1999, and the balance of $13,000 will be applied to reduce the October 2000 sinking fund requirement.
All debentures are unsecured and are not subject to any sinking fund requirement.
I control for differences in bond ratings, call options, sinking fund requirements, insurance, and years-to-maturity across bond issues.
Judge Lifland rejected this argument, pointing out that maturity dates, interest rates and sinking fund requirements were all changed with the new debt.
Maturities and sinking fund requirements on long-term debt are as follows:
He has participated in thousands of transactions for companies negotiating purchase of their issues either in anticipation of filling Sinking Fund requirements, taking advantage of attractive market conditions, or simply addressing strategic debt reduction objectives.
50 per share and will be perpetual, having no redemption or sinking fund requirements.
The series C bonds will be due as $22,155,000 serials on June 1, 2005-21 with $12,870,000 terms with mandatory sinking fund requirements on June 1, 2027, and will be optionally callable on dates and at prices yet to be determined.