Debt Capital Markets · glossary
Valkenrade’s right to repay all or some of the Notes before 15 June 2033. It pays the higher of par and today’s value of the payments holders would still receive up to that date. So holders get at least par, and more if market rates have fallen since the issue. Condition 6.3 · Chapter 4 · see Par call
Explained in Chapter 4, Redemption: Maturity, Early Calls and the Change of Control Put, of Debt Capital Markets.
Valkenrade may want to repay early, for example to replace the Notes with cheaper debt. Holders want the opposite, because they bought seven years of income at 4 per cent a year. If they are repaid early, they may be unable to reinvest at a similar return. The make-whole call lets Valkenrade repay early at a price that leaves holders no worse off…Read Chapter 4, Redemption: Maturity, Early Calls and the Change of Control Put →
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