The deferred-cash-payment bond and the reset note were commonly used for these purposes.
Reset Notes. Reset notes have characteristics of both floating- and fixed-rate debt.
To lessen the risk that reset notes will exacerbate financial stress, many issuers place caps on the coupon rate.
London: Fitch Ratings has assigned Griffith Park CLO DAC series of reset notes final ratings as follows:
Net proceeds from the reset notes are being used to redeem the old notes.
Clifford Chance has advised Emirates NBD (ENBD) in relation to the issuance of $750 million 4.875 per cent subordinated reset notes
due 2023 (the "Notes") under its $7.5 billion European Medium Term Note Programme
Needing 95% of the bondholders to accept the offer, CNI said 91.5% of holders of 13% senior reset notes
, and 89.4% of holders of subordinated discount debentures had accepted.
* Remarketed reset notes--GE Capital issued $500 million of remarketed reset notes
in late 1987.
CNI recently raised its cash repurchase offer on $125 million in 13% senior reset notes
to 75% of face value, from 74.024%.