doubling option

Doubling option

A sinking fund provision that may allow repurchase of twice the required number of bonds at the sinking fund call price.

Doubling Option

A provision in some bond indentures allowing the issuer to repurchase up to twice the number of bonds specified in the indenture's sinking fund provision. That is, the doubling option allows the issuer to redeem a large number of bonds prematurely. The redemption occurs at face value, or close to it. The issuer usually exercises the doubling option when interest rates are low and it can re-issue the same bonds at less expense to itself. The doubling option reduces the return for investors.

doubling option

A provision in some indentures that allows the borrower, at his or her option, to retire twice as many bonds as stipulated under a sinking fund requirement. The additional retirements take place at or near par, so that the option is used during periods of low interest rates. Thus, the provision operates to the disadvantage of investors. Compare sinking fund provision. See also call provision.
References in periodicals archive ?
n1 with ptt greater than 1.6 t, of contained dimensions and reduced environmental impact for waste collection with doubling option.
'Quite simply, whilst there was the doubling option on the table, there was no way I was ever going to turn that opportunity down.
The exceptions are Rupp, an automatic qualifier in the 10K, who is entered in the 1,500 and 5,000 to keep his NCAA doubling options open; sophomore Jamesha Youngblood in the women's triple jump and long jump; and Warren, a sophomore, who is seeded ninth in the long jump and 11th in the high jump.