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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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Because the escrow account can only earn the low refunding bond rate, but must pay the high refunded bond rate, the escrow account requires more funds, resulting in a higher issue size, further resulting in a lower savings level.

Understanding current and advance refundings

The certificate proceeds will be used to fund various capital projects and expenditures, while the refunding bond proceeds will refund a portion of the city's outstanding debt.

S&P rates US city Liberty's 2010 debt at A

Release date- 22082019 - Kroll Bond Rating Agency (KBRA) assigns a long-term rating of AA+ with a Stable Outlook to the Metropolitan Transit Authority of Harris County, Texas (the 'Authority') Sales and Use Tax Refunding Bonds Series 2019A and Taxable Series 2019B.

KBRA Assigns an AA+ with a Stable Outlook to the Metropolitan Transit Authority of Harris County, TX Series 2019 A & B

--$36.5 million Michigan Finance Authority hospital revenue and refunding bonds, series 2013A;

Fitch assigns IDR of 'AA-' to Holland Community Hospital

The city issued Series 2015 General Obligation Refunding Bonds at lower interest rates to retire the outstanding Series 2007 General Obligation Bonds with higher rates--3.14 percent versus 4.8 percent.

Bond refunding saves city $6.4 million

The first is for the issuance of refunding bonds, not to exceed $7.5 million, which will cover debts already on the books for the sales tax, currently set to expire in 2022.

CENTRAL ARKANSAS Conway voters deciding on bond issues

The sale consists of USD$371.1 million of refunding bonds subject to the alternative minimum tax (AMT) and USD$133.6 million non-AMT refunding bonds structured with serial maturities from 2014 through 2034, the POS said.

Chicago's O'Hare airport is planning to sell USD$899.1 million of general airport senior lien revenue bonds

Meanwhile, Bank of America Merrill Lynch (NYSE: BAC) has won USD441m in refunding bonds, for which the State will use the proceeds to refund certain previously issued general obligation bonds.

-Citi, BofA buys USD997m of Georgia muni bonds

S&P also gave its A+ long-term rating to the city's USD788.595m (EUR564.811m) series 2010A GO refunding bonds, series 2010B GO taxable project bonds, and series 2010C GO taxable project and refunding bonds.

-Structural imbalances sink Chicago's GO debt rating to A+

However, this tax increase will not cover any taxable property located in the "dissolved school district." Other conditions provide that the net interest rate, maturity date, and "tax levy" of the refunding bonds cannot exceed that of the refunded bonds.