Make-Whole Premium definition: Copy, customize, and use instantly
Introduction
The term "Make-Whole Premium" refers to a payment made by the borrower to the lender in the event of early repayment of a debt. It ensures that the lender receives the same amount of compensation as if the debt had been paid off at the originally scheduled maturity. The make-whole premium is often used to protect the lender from potential interest losses due to early redemption of the loan or bond.
Below are various examples of how "Make-Whole Premium" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Make-Whole Premium" as early repayment penalty
This definition ties "Make-Whole Premium" to the penalty imposed when a loan or debt is repaid earlier than scheduled.
"Make-Whole Premium" means an amount payable by the borrower to the lender, calculated as the present value of all remaining scheduled interest payments on the debt, discounted to the date of repayment at the relevant discount rate.
Definition of "Make-Whole Premium" for bondholders
This definition connects "Make-Whole Premium" to its use for bondholders when a bond is redeemed before maturity.
"Make-Whole Premium" refers to the premium paid to bondholders in the event of early redemption, ensuring they receive compensation for lost interest payments, calculated using a specified formula.
Definition of "Make-Whole Premium" for loan agreements
This definition links "Make-Whole Premium" to the terms of loan agreements involving early repayment.
"Make-Whole Premium" means the sum calculated to ensure that the lender is made whole in the event of an early repayment of the loan, which includes all future interest payments due, discounted at a specified rate.
Definition of "Make-Whole Premium" in debt refinancing
This definition applies "Make-Whole Premium" to debt refinancing scenarios where an existing loan is refinanced early.
"Make-Whole Premium" refers to the amount payable by the borrower to compensate the lender for the early repayment of a loan that is being refinanced, equal to the present value of the remaining interest payments.
Definition of "Make-Whole Premium" for interest rate protection
This definition ties "Make-Whole Premium" to interest rate protection mechanisms for lenders.
"Make-Whole Premium" means the payment made to the lender to compensate for the difference between the original loan’s interest rate and the current market rate, in the event of early repayment.
Definition of "Make-Whole Premium" for early debt settlement
This definition connects "Make-Whole Premium" to the settlement of debt obligations before their due date.
"Make-Whole Premium" refers to the additional payment made by a borrower upon the early settlement of the debt, which compensates the lender for the interest payments they would have otherwise received.
Definition of "Make-Whole Premium" for prepayment clauses
This definition links "Make-Whole Premium" to prepayment clauses found in credit agreements.
"Make-Whole Premium" means a payment due when a borrower prepays part or all of the loan before maturity, calculated based on the remaining interest payments due under the original terms.
Definition of "Make-Whole Premium" for corporate loans
This definition applies "Make-Whole Premium" to corporate loan agreements involving early repayment.
"Make-Whole Premium" refers to the compensation paid by a corporate borrower to a lender if the loan is repaid before its maturity date, ensuring that the lender receives the equivalent of all interest payments due.
Definition of "Make-Whole Premium" for private placements
This definition connects "Make-Whole Premium" to private placement transactions where early repayment might occur.
"Make-Whole Premium" means the amount payable in the event of early repayment of debt securities in a private placement, ensuring that the lender or investor is compensated for the interest they would have received.
Definition of "Make-Whole Premium" for structured finance
This definition links "Make-Whole Premium" to structured finance transactions where early redemption is involved.
"Make-Whole Premium" refers to the premium that is paid to the investor in a structured finance deal when the debt is redeemed early, ensuring they are compensated for any potential losses in interest income.
Definition of "Make-Whole Premium" in investment agreements
This definition ties "Make-Whole Premium" to investment agreements where early exit or repayment is considered.
"Make-Whole Premium" means the amount paid to an investor in the event of early repayment of a debt or investment, ensuring they are made whole by compensating for the loss of future interest payments.
Definition of "Make-Whole Premium" for financial restructurings
This definition applies "Make-Whole Premium" to debt restructurings where early repayment is negotiated.
"Make-Whole Premium" refers to the amount negotiated during a financial restructuring to compensate creditors for the early repayment of their debt obligations, ensuring that the creditors are not deprived of expected interest payments.
Definition of "Make-Whole Premium" in bond redemption
This definition connects "Make-Whole Premium" to its role in bond redemption events.
"Make-Whole Premium" means the payment made to bondholders in the event of early redemption of the bond, calculated based on the present value of the remaining interest payments, discounted at a market rate.
Definition of "Make-Whole Premium" for debt payoff scenarios
This definition ties "Make-Whole Premium" to the payoff of debt before the maturity date.
"Make-Whole Premium" refers to a payment made to ensure the lender or bondholder is compensated for the loss of expected interest when a debt is paid off earlier than scheduled.
Definition of "Make-Whole Premium" for capital markets
This definition links "Make-Whole Premium" to its use in capital markets transactions where early redemption is involved.
"Make-Whole Premium" means the compensation paid in the capital markets when an issuer repays its debt early, calculated to match the value of all remaining interest payments.
Definition of "Make-Whole Premium" for fixed-income securities
This definition applies "Make-Whole Premium" to fixed-income securities such as bonds, where early repayment might occur.
"Make-Whole Premium" refers to the additional payment made to holders of fixed-income securities when the issuer repays the securities early, compensating for the remaining interest payments.
Definition of "Make-Whole Premium" in financing agreements
This definition ties "Make-Whole Premium" to financing agreements involving early repayment.
"Make-Whole Premium" means the amount payable by the borrower under a financing agreement when repaying the loan early, calculated as the sum of remaining interest payments discounted to present value.
Definition of "Make-Whole Premium" for securitized debt
This definition connects "Make-Whole Premium" to securitized debt transactions.
"Make-Whole Premium" refers to the payment made to holders of securitized debt when the debt is paid off early, ensuring they receive the value of expected interest payments.
Definition of "Make-Whole Premium" for redemption options
This definition applies "Make-Whole Premium" to debt securities with early redemption options.
"Make-Whole Premium" means the premium payable to debt holders when a redemption option is exercised early, ensuring that they are made whole by compensating for lost future interest payments.
Definition of "Make-Whole Premium" for government bonds
This definition connects "Make-Whole Premium" to government bond repayment terms.
"Make-Whole Premium" refers to the compensation paid to bondholders in government bond transactions when the bonds are redeemed earlier than scheduled, calculated based on the present value of remaining interest payments.
Definition of "Make-Whole Premium" for financing costs
This definition links "Make-Whole Premium" to its role in covering financing costs when early repayment occurs.
"Make-Whole Premium" means the payment made to the lender or investor to cover the financing costs incurred due to early repayment, ensuring they receive compensation for the interest income lost.
Definition of "Make-Whole Premium" for corporate finance transactions
This definition applies "Make-Whole Premium" to corporate finance where early repayment of debt is involved.
"Make-Whole Premium" refers to the premium paid by a corporate borrower to compensate the lender for the early repayment of a loan, ensuring that the lender is not deprived of expected interest income.
Definition of "Make-Whole Premium" for financial contracts
This definition connects "Make-Whole Premium" to its inclusion in financial contracts to protect lenders from early repayment.
"Make-Whole Premium" means the additional amount payable in the event of early repayment of debt or loans, ensuring that lenders are compensated for the lost future interest payments.
Definition of "Make-Whole Premium" for early termination of credit facilities
This definition ties "Make-Whole Premium" to early termination clauses in credit facilities.
"Make-Whole Premium" refers to the compensation payable upon the early termination of a credit facility, calculated as the present value of future interest payments lost due to the termination.
Definition of "Make-Whole Premium" in debt restructuring negotiations
This definition links "Make-Whole Premium" to debt restructuring agreements.
"Make-Whole Premium" means the negotiated payment made during a debt restructuring to compensate creditors for the early repayment of debt, ensuring that the creditors are made whole for lost interest.
Definition of "Make-Whole Premium" as compensation for lost interest
This definition ties "Make-Whole Premium" to its role in compensating lenders for lost interest income.
"Make-Whole Premium" means the amount payable by the borrower to the lender, calculated as the present value of all future interest payments that would have been due under the original terms, discounted at a specified rate.
Definition of "Make-Whole Premium" for early loan repayment
This definition connects "Make-Whole Premium" to early loan repayment scenarios.
"Make-Whole Premium" refers to the payment made by the borrower to the lender when the loan is repaid before its maturity, ensuring the lender receives compensation for any future interest payments they would have otherwise earned.
Definition of "Make-Whole Premium" for bond redemption
This definition links "Make-Whole Premium" to its application in bond redemption events.
"Make-Whole Premium" means the premium paid to bondholders when a bond is redeemed before its maturity, calculated based on the remaining interest payments, discounted to the date of redemption using a specified discount rate.
Definition of "Make-Whole Premium" in credit facilities
This definition applies "Make-Whole Premium" to credit facility agreements.
"Make-Whole Premium" refers to the compensation paid to the lender in the event of early termination or repayment of a credit facility, equal to the present value of all remaining interest payments due under the agreement.
Definition of "Make-Whole Premium" for debt instruments
This definition ties "Make-Whole Premium" to debt instruments that are repaid early.
"Make-Whole Premium" means the amount payable by the borrower to the lender when debt instruments such as loans or notes are repaid prior to their maturity, ensuring the lender receives compensation for lost interest.
Definition of "Make-Whole Premium" in refinancing situations
This definition connects "Make-Whole Premium" to situations where a loan or debt is refinanced before maturity.
"Make-Whole Premium" refers to the payment made to the lender or bondholder when a loan or debt is refinanced early, compensating them for the loss of interest payments they would have otherwise received.
Definition of "Make-Whole Premium" for structured finance transactions
This definition applies "Make-Whole Premium" to structured finance transactions.
"Make-Whole Premium" means the compensation paid to investors or lenders in structured finance deals when a debt is repaid early, calculated to reflect the present value of lost future interest payments.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.