paydown

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Paydown

1. A payment on the interest and/or principal on a loan; debt service.

2. When a bond is called or matures and a new one is issued, the amount by which the face value of the old issue exceeds the face value of the new one. This represents a reduction in the issuer's debt. If a company pays out $10,000,000 in bond maturities and then issues $7,000,000 in new bonds, this is an example of paydown, because the company now has $3,000,000 less in debt.

paydown

In a corporate or U.S. Treasury refunding, the amount by which the face value of the bonds being refunded exceeds the par value of the new bonds being sold. The paydown represents the amount by which the debt is reduced.
References in periodicals archive ?
By refinancing your mortgage to pay down debt, you could significantly reduce the interest rate on some of your high-interest debt.
Emily Clark of Oklahoma City said she knows how difficult it is to pay down debt.After racking up $17,000 in credit card debt from college, she worked to pay down what she owed, but with little luck.
Given the risks associated with negative amortization, this report focuses on the institutions with the greatest shares of students who have failed to pay down principal on their loans five years into repayment.
Today, Perlis mufti Mohd Asri Zainul Abidin appeared to comment on the matter via his official Facebook account, saying there was no oddity in members of the public volunteering to help the government pay down its debts.
The company continues to reiterate its expectation to pay down USD 5bn in debt from divestiture proceeds and free cash flow within 18 months of August 2016.
This partnership is an expansion of Gradifi's free integrated member paydown rewards platform that will allow its members to earn rewards that are automatically used to pay down their student loan debt.
The Mexican central bank has said that it will use its reserves to pay down debt.
Dan Patrick, joined by the Texas Senate's lead budget writers, announced "a new bold proposal" Wednesday morning to allow lawmakers to cut property taxes and pay down the state's debt without busting the state's politically charged spending cap.
- The SMART Way to Pay Down Bills - with SMART Payment Plan
That means if HELOC borrowers faced payments they could not or would rather not make in the pay down, they would almost certainly be able to refinance the loan with either the credit union or another lender, Masood explained.
The company has already toped its initial full-year target for 2014 to pay down EUR2.5bn of its debt and now anticipates to pay down EUR7.5bn, it further explained.
Using the $20,000 to pay down debt is taking borrowed money to pay down or pay off borrowed money.