Funded Debt

A company's debt, such as bonds, long-term notes payables or debentures that will mature in more than one year or one business cycle. This type of debt is classified as funded debt because it is funded by interest payments made by the borrowing firm over the term of the loan.

Funded debt is synonymous with "long-term debt".

Funded debt is one form of financing a company can use to finance its long-term capital projects, such as the addition of a new product line or the expansion of operations. The firm may also use short-term financing to fund its long-term operations. This exposes the firm to a higher degree of interest rate and refinancing risk, but allows for more flexibility in its financing.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Funded debt — Debt maturing after more than one year. The New York Times Financial Glossary * * * funded debt UK US noun [U] FINANCE ► (also long term debt) money borrowed by a company for long periods in the form of loans or bonds: »The figure must be… …   Financial and business terms

  • funded debt — debt maturing after more than one year. Bloomberg Financial Dictionary * * * funded debt UK US noun [U] FINANCE ► (also long term debt) money borrowed by a company for long periods in the form of loans or bonds: »The figure must be included in… …   Financial and business terms

  • funded debt — n. A debt that has a fund allocated for its payment. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • funded debt — Fin long term debt or debt that has a maturity date in excess of one year. Funded debt is usually issued in the public markets or in the form of a private placement to qualified institutional investors …   The ultimate business dictionary

  • funded debt — noun also funded liability Etymology: funded from past participle of fund (II) : fixed liability; specifically : bonded debt …   Useful english dictionary

  • funded debt — noun debt in the form of securities with long term or indefinite redemption. Compare with floating debt …   English new terms dictionary

  • funded debt — 1) The part of the national debt that the government is under no obligation to repay by a specified date. This consists mostly of Consols Compare floating debt See also funding operations 2) Borrowing with a maturity in excess of a year …   Big dictionary of business and management

  • funded debt — A debt for which revenues have been provided to pay the interest and to make payments upon the principal so that the debt will be gradually reduced. Ketchum v Buffalo, 14 NY 356, 367 …   Ballentine's law dictionary

  • funded debt — a debt, as in the form of bonds, having a long period of maturity. [1810 20] * * * …   Universalium

  • funded debt — /ˈfʌndəd dɛt/ (say funduhd det) noun a government debt, not repayable before twelve months, for the repayment of which a sinking fund has been established …   Australian English dictionary

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