Medium-Term Note (MTN)
Definition - What does Medium-Term Note (MTN) mean?
A medium-term note is a fixed note that is
repaid within five to 10 years. This is usually seen in bonds. It is a way for
companies to legally raise capital by issuing debt security bonds on a regular
basis. When a medium term note is issued, the issuing company is legally obliged
to comply with SEC regulations and report the existence of the issuance.
Justipedia explains Medium-Term Note (MTN)
A medium-term note can be shorter than five years and can offer fixed or floating interest rates. The reason that a financial
institution or company would choose to issue a medium-term note is due to the
ability to then offer a range of different securities without having to apply
to the SEC each time to do so. In essence, it is a blanket finance that allows
legal transfers to be made under it in different amounts and terms.