senior refunding

senior refunding definition - finance
Replacing securities that have been issued many years earlier with the objective of reducing the bond issuerÂ’s interest costs, assuming interest rates have fallen. Another reason the senior, or older, debt may be refunded is to consolidate several debt issues into one or to extend the maturity dates of its debt in order to lock in favorable interest rates.

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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