Issuing a longer-maturity bond in order to pay off an earlier bond (usually prior to its maturity), in order to take advantage of a drop in interest rates. also called advance refunding.
Related information about prerefunding:
- Prerefunding - Financial Dictionary - The Free Dictionary
 Procedure of floating a second bond at a lower interest rate in order to pay off the   first bond at the first call date and to reduce overall borrowing costs.
 
- What is prerefunding? definition and meaning
 Definition of prerefunding: Issuing a longer-maturity bond in order to pay off an   earlier bond (usually prior to its maturity), in order to take advantage of a drop in ...
 
- Prerefunding: Definition from Answers.com
 procedure, called a pre-re on Wall Street, in which a bond issuer floats a second   bond in order to pay off the first bond at the first call date.
 
- prerefunding Definition | Business Dictionaries from AllBusiness.com
 procedure, called a pre-re on Wall Street, in which a bond issuer floats a second   bond in order to pay off the first bond at the first call date. The proceeds from the ...
 
- PREREFUNDING DEFINITION
 PREREFUNDING is the the issuing of new securities to refund an outstanding   security. Proceeds from the new securities are used to buy instruments, usually ...
 
- 31 CFR 306.26 - Redemption of registered securities at maturity ...
 Jul 1, 2012 ... Redemption of registered securities at maturity, upon prior call, or for   prerefunding or advance refunding. Registered securities presented and ...
 
- 31 CFR 306.27 - Redemption of bearer securities at maturity, upon ...
 Jul 1, 2012 ... All coupons bearing dates subsequent to the date fixed in a call for redemption,   or offer of prerefunding or advance refunding, should be left ...
 
- 31 CFR 306.25 - Presentation and surrender. | LII / Legal Information ...
 Jul 1, 2012... may afford owners the opportunity of exchanging a security for another security   pursuant to a prerefunding or an advance refunding offer.