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Related to paydown: Paydown Factor


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.


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 ?
Upgrades may occur with improved pool performance and additional paydown or defeasance.
A student loan repayment program can significantly accelerate the paydown of student debt.
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.