Callability definition
Callability. The preferred shares will be callable at issue price plus accrued dividends, if any, on 30 days notice at the option of the Company, at any time. Ranking: The preferred shares will rank senior to all obligations of the Company with a carve-out for a mutually agreeable working capital facility when and if needed.
Callability means that repayment of principal and accrued interest can be demanded ahead of a debt’s maturity. Confusingly, “call bonds” are bonds which the debtor (rather than the creditor) has the option to “call back” and pay off a debt. For our purposes and general clarity, we use “callability” for the creditor’s right to demand early repayment, and “prepayment” for the debtor’s right to pay a debt early.
Examples of Callability in a sentence
In order to provide attractive features to our clients, we offer three key deal points beneficial to issuers: • Callability.