Refunding
A transaction in which refunding bonds are issued and their proceeds are used to pay off outstanding bonds.
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Reissuance
Reissuance refers to the deemed new issuance of outstanding Tax-Exempt Bonds for federal tax purposes under Section 1001 of the Code and Treasury Regulations Section 1.1001-3 as a result of certain changes to the terms of the Tax-Exempt Bonds after original issuance of such Tax-Exempt Bonds. It is important to recognize a Reissuance because it is treated as a Current Refunding of Tax-Exempt Bonds. A new information return will need to be timely filed with the IRS and final Rebate compliance will be required for the deemed Refunded Bonds.
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Interest Rate Swap
A type of derivative, in which the interest rate on the bonds is swapped, or exchanged, by the issuer for an agreed-upon fixed rate or variable rate based upon an index, calculated on a notional principal amount.