What is a make-whole provision?

A make-whole call provision is a type of call provision on a bond allowing the issuer to pay off remaining debt early. The payment is derived from a formula based on the net present value (NPV) of previously scheduled coupon payments and the principal that the investor would have received.

What is a make-whole amount?

Make-Whole Amount means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero.

What is interest make-whole?

If upon full repayment of the Obligations, the aggregate amount of interest accrued on the Notes (whether paid at the time of full repayment of the Obligations or previously) is less than the Minimum Interest Amount, the Borrower shall pay to the Buyer an amount equal to such shortfall.

What is makewhole in a loan?

A make-whole call is a type of call provi- sion in a bond allowing the borrower to pay off remaining debt early. The borrow- er has to make a lump sum payment to the holder derived from an earlier agreed- upon formula based on the net present value (NPV) of future coupon payments not paid because of the call.

What is a make whole spread?

Make-Whole Spread means, with respect to any Series of Equipment Notes, the percentage specified for the applicable Series as such in Schedule I to the Indenture (as amended, in the case of any Additional Series, new Series A Equipment Notes or new Additional Series issued pursuant to Section 2.02 of the Indenture, at …

How do you calculate make a whole call?

With a make-whole call, the call price is calculated as the maximum of the par value and the present value of the bond’s remaining payments discounted at the prevailing risk-free rate plus a pre-specified spread known as the make-whole premium.

What is make-whole means?

(finance, law) To provide (someone), especially under the terms of a legal judgment or an agreement, with financial compensation for lost money or other lost assets.

What is a make-whole spread?

What is make-whole spread?

What is make whole spread?

How does make whole premium work?

The make-whole premium is formulated to give the bondholders the benefit of their bargain, i.e., to compensate them for losing the benefit of their call protection in the event the bonds are redeemed prior to the end of the non-call period.

What is the make-whole spread?