Glossary / finance terms
Original issue discount (OID)
The difference when debt is issued for proceeds below its stated principal amount, on the issue-price basis specified.
Why the distinction matters
A borrower receiving less than par still repays the contractual amount. The cost effect depends on timing and amortisation, so discount cannot simply be added to an annual coupon.
Read the structure
Read the equity option, cash obligations and maturity together.
Convertible finance for neoclouds ↗In the filed deals
Applied Digital's Polaris Forge 1 notes were issued at 97.0.
For in-house counsel
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Related terms
Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.
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