medium-term note

Also found in: Dictionary, Medical, Acronyms.

Medium-term note (MTN)

A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

Medium Term Note

An unconventional bond note with a maturity period usually between five and 10 years continually offered through various brokers, rather than issued all at once like other bonds. Unlike most bonds, which are bought and sold on exchanges, MTNs are normally purchased through an MTN brokerage, which operates on a best effort basis and is under no obligation to sell a certain amount on behalf of the issuer. Unlike corporate bonds, MTNs are almost always marketed to institutions and high net-worth individuals and have few or no small and medium investors. Beyond that, they functions much like corporate bonds: unsecured, non-callable, with fixed coupons and investment grade ratings. MTNs have become a favorite form of fundraising for large corporations, government agencies, and sovereign states. This demand has led to more complex MTNs, with floating interest rates and maturity periods from nine months to 30 years or longer. See also: Euro medium term note.

medium-term note (MTN)

A corporate debt security offered intermittently or continuously by an agent of the issuer. Medium-term notes are issued under the SEC's Rule 415. Despite being called notes, these debt securities generally offer a wide range of maturities.
References in periodicals archive ?
NEW YORK -- Fitch Ratings has reviewed and affirmed the ratings assigned to Medium-Term Notes series and Short-Term Notes series issued by 11 Puerto Rico closed-end funds (CEFs) advised by Santander Asset Management (Puerto Rico).
Currently the funds utilize short-term and medium-term notes and reverse repurchase agreements.
As noted in the Rating Actions section of this release, six of the funds have 100% Principal Protection Medium-Term Notes that are indexed notes, whereby the amount of interest payable on an interest payment date is calculated under transaction-specific terms tied to the performance of a reference equity index, a basket of equity indices, or the performance of market interest rates.
100% Principal Protection 100% Principal Protection Medium-Term Notes series, affirmed at 'AA' and removed from Rating Watch Evolving;
Hartford Life's new medium-term note program is targeted to retail investors and provides for unlimited issuances of Hartford Life IncomeNotes(sm) and Hartford Life medium-term notes.
It is anticipated that the use of proceeds from any future medium-term note issue under the program will be used to purchase investment assets that will generate investment income in excess of amounts payable under the notes.
In a related event, American Residential recently filed a shelf registration statement with the Securities and Exchange Commission to register the issuance of up to $250 million in debt securities, intended to cover its planned medium-term note program.
The company has paid up capital of $1 billion, which supports up to a total of $10 billion of commercial paper and medium-term notes.
Fitch has also affirmed the rating of Copamex's peso-denominated medium-term notes or Certificados Bursatiles (CBs) at 'A(mex)' and the short-term rating at 'F2(mex)'.
has raised the rating of Boston Edison Company's debentures and medium-term notes to BBB+' (Triple-B-Plus) from BBB' (Triple-B).