refunding
refunding definition - finance
The
redemption of securities, typically debt, by raising more funds through another
offering. When a company conducts a refunding operation, it recalls its existing bonds from the market. In exchange,
a new bond issue is sold. Refunding may be done because the bonds are nearing
maturity or because interest rates have fallen.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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