When a bond is issued it is sold at par. Par = $100 at start. The note pays interest and can be a callable note which means the company who issued it can give you your $100 back per note and retire it. Some are not callable and hence will pay interest until the mature date in which the company pays out the $100 par. Allen's post about C doing a reissue of new bonds would make sense. C knows that by buying the USG 7.7 billion shares is the key to get the USG off its back, drop the float. Here comes the USG share buy out by C. The USG needs the $ to fund programs to create jobs...they are now under pressure because of the Mass election results....IMo...Blue
That the repurchasing will be PART of its plan.
That the whole plan is to use "excess" cash to retire older debt that will soon be due.
A part of this older debt is a debt to the USG. Right?
It would be amusing (especially for shorts) if they retire these maturing notes and issue a similar amount of debt to retire outstanding shares.
Longs would be laughing all the way to the bank.
Really, I would think they'd retire these debt because they'd want to issue new debt for the sole purpose of lowering the outstanding shares.