refunding bond

Refunding Bond

A bond that retires another bond before the first bond matures. A company may issue a refunding bond for a number of reasons, but mainly because of a decline in interest rates, which reduces the cost of funding. Refunding bonds deprive bondholders of the first bond from future coupon payments to which they would otherwise of have been entitled. Most bonds are nonrefundable for at least five or 10 years after issue, but a refunding bond may be issued afterward.

refunding bond

A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding.
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Unlimited tax school building and refunding bonds, series 2001;
Fitch Rates Various Outstanding Texas School District GO Bonds 'AAA'
These calculations were contained in schedules provided to them by UBS Financial Services, underwriter for the refunding bonds.
Fitch Rates $60.385MM CA Cnty Tobacco Sec Agency (Sonoma) Bnds 'AAApre'
Aberdeen (NJ), $9,905,000 general obligation sewer utility refunding bonds, ser 2006 (insured: Financial Security Assurance Inc.
Insured Issues Rated 'AAA' by Fitch December 29, 2006
Samuel Klein and Company verified the mathematical accuracy of computations of the adequacy of receipts from the escrowed funds and securities to meet interest and redemption requirements of the refunded bonds, contained in schedules provided to them by Citigroup, underwriter for the refunding bonds.
Fitch Rates $513.825MM LIPA Electric System Revs 'AAApre'
Birmingham (AL), $64,320,000 general obligation refunding bonds, series 2006-B (insured: MBIA Insurance Corp.
Insured Issues Rated 'AAA' by Fitch December 20, 2006
29, 2006 with proceeds of the State's Board of Education Lottery Revenue Refunding Bonds, Series 2006B and amounts transferred from the sinking funds for the refunded bonds.
Fitch Rates Florida State Board of Education Lottery's $150.96MM Revs Series 1999A & 2000C 'AAApre'
Austin Community College District (TX), $23,110,000 general obligation limited tax refunding bonds, series 2006 (insured:, by MBIA.
Insured Issues Rated 'AAA' by Fitch December 11, 2006
RE-2J (CO), $3,440,000 general obligation refunding bonds, series 2006 (insured: FSA)
Insured Issues Rated 'AAA' by Fitch December 7, 2006
104,500,000 revenue refunding bonds senior series 1999-A-3 at 'AAA';
Fitch Rates Louisiana Public Facilities Authority Student Loan Revenue Bonds 'AAA'
28,805,000 health facilities revenue refunding bonds, series 2004G;
Fitch Upgrades Catholic Healthcare West (California) to 'A+'; Outlook Stable
59,290,000 hospital revenue refunding bonds, series 2005A (Adventist Health System/Sunbelt Obligated Group) 'A+';
Fitch Rates Adventist Health System Sunbelt (Florida) $205MM 2006G 'A+'; Outlook Stable
The bonds were refunded on November 2, 2006 with proceeds of the State's Board of Governors Florida Atlantic University Dormitory Revenue Refunding Bonds, series 2006B.
Fitch Rates Florida Board of Regents $20.06MM 2000 Revs 'AAApre'

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