VRDB


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VRDB

Variable-Rate Demand Note

A debt security that a holder may require the issuer to redeem before maturity. When this occurs, the issuer must pay par to the holder, and the holder loses any future coupon payments that he/she might otherwise have been due. An advantage to a variable-rate demand note from the holder's standpoint is the fact that the holder may reinvest the par value in a new bond in a time of rising interest rates. This protects the holder from certain types of interest rate risk.

Variable-rate demand notes come in two main forms. The first allows the holder to demand redemption on any of several days throughout the life of the bond, while the second only allows this on one particular day. Variable rate demand notes are also known as variable rate demand obligations, option tender bonds, or put bonds. In Canada, the most common term is a retractable bond.
References in periodicals archive ?
*The series 2018 VRDBs will be supported by a letter of credit (LOC) from Barclays (expected to expire in November 2022).
When excluding $57 million of series 2004A guaranteed VRDBs that are paid by HFF on NGF's behalf, the debt mix is more conservative at 49% fixed-rate and 54% variable.
--$12,190,000 series 2007A variable rate demand bonds (VRDBs);
Bond proceeds will be used to: refund MultiCare's $250 million bridge loan used to acquire the assets of Rockwood Health System (Rockwood) from for-profit Community Health Systems (CHS); refund the series 2007A&B fixed rate bonds, series 2007C&D variable rate demand bonds (VRDB), and series 2012B variable rate direct purchase bonds; reimburse MultiCare for $50 million of cash used as part of the acquisition of Rockwood; and pay the costs of issuance.
--$143.4 million VRDBs issued by WHCFA (series 2007C&D)*.
Thus, Fitch includes both UTS and TAMUS related VRDB debt and CP authorizations in liquidity calculations.
Buenos Aires City: Moody's Latin America Agente de Calificacion de Riesgo (Moody's) has withdrawn the Caa1 / Baa2.ar of the VRDA, the Caa1 / Baa2.ar of the VRDB and the Ca / Ca.ar ratings of the certificates of Fideicomiso Financiero EISA 2014 due to business reasons.