annual debt service

Annual Debt Service

The total amount of money required each year to make payments on the principal and interest on long-term loans, bond interest, and the principals of maturing bonds. One calculates the annual debt service by adding together all debt service an individual or company pays each year, or by adding debt service for a month and multiplying by 12. See also: Debt service coverage ratio.
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annual debt service

The total of all principal and interest payments made over the course of a year.This figure provides one of the analytical tools for mortgage lenders of income-producing properties, who compare net annual income of the property to annual debt service on the proposed mortgage to arrive at a debt service coverage ratio. Acceptable ratios depend on the particular industry and on lending market conditions at the time.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
In a statement, the ministry said the aim of this loan is repay other loans, and it will save Jordan around $50 million of annual debt service if the government had resorted to Eurobonds, with a cost of 8-9 percent.
Sims exclusively underwrote USD 101,145,000 of fixed rate bonds, priced on March 21, 2019, achieving USD 500,000+ in savings on annual debt service from the feasibility study assumptions.
HEALTHY FINANCES: Historical rate increases and a decline in fixed annual debt service costs have led to elevated debt service coverage (DSC) and robust cash levels.
The remaining term of the acquired debt is approximately five years and the annual debt service costs (i.e.
Following the transaction the group's annual debt service costs are expected to reduce from PS40 million to approximately PS33 million.
Further, the University's annual debt service is modest at 2.9 percent of unrestricted revenues, and its net position grew by 16.6 percent.
Although annual debt service coverage remains strong for both first- and second-lien sales tax-secured debt, particularly after a recent legislated expansion of the sales tax base that has raised annual coverage in the short-term, growth in sales tax is still needed to maintain high annual debt service coverage for first-lien bonds, and to cover combined first- and second-lien maximum annual debt service (MADS) occurring in 2041.
"We created significant value to the shareholders by reducing the annual debt service to the co-op; in turn lowering the monthly maintenance of each apartment."
Average annual debt service is total debt service divided by the number of years for the loan.
Part of the refurbishment costs will be debt financed and the annual debt service and issuance costs will be recovered through terminal rates and charges.

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