What is 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 a make-whole bond?

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 is make-whole premium calculated?

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 a make whole claim?

Make-Whole Claims in Bankruptcy By modifying the “perfect tender in time rule,” make-whole provisions allow debtors to repay debt in advance of stated maturity, in exchange for a predetermined premium, usually based on the discounted value of the stream of future scheduled interest payments.

What is a make whole premium?

A “make-whole” premium is generally a present-value calculation that discounts the payments that would have been received if the debt is not prepaid, calculated based on comparable treasury yields.

What is a make whole prepayment penalty?

So what is a make whole premium? It is a type of prepayment penalty that is imposed if the loan is paid off early to compensate the lender for the interest that it was not able to earn over the remaining term of the loan.

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. Sample 2.

Is a make-whole premium interest?

The make-whole premium is the value of all future interest and principal payments, discounted to their present value (PV) at a pre-specified rate.

What is a make-whole claim?

What does it mean to make whole?

(transitive, set phrase) To restore (someone) to a sound, healthy, or otherwise favorable condition. quotations ▼ (transitive, set phrase) To repair or restore (something).

What is make whole redemption price?

Make-Whole Redemption Price means the sum of the outstanding principal amount of the Notes to be redeemed plus the Make-Whole Amount of such Notes.