Why New Issue InterNotes?
Weekly offering of InterNotes provide individual investors the opportunity to buy debt securities directly from the issuer through their broker. Typically, individuals obtain their bonds in the secondary market, where securities are bought and sold after their original issuance. Buying new issues of InterNotes simplifies the purchasing decision, with no premium or discount pricing, no accrued interest, and a fixed price during a week's offering period. Investors should check with their broker for applicable fees or commissions that their brokerage firm may apply.
How are New Issues Priced?
New issue InterNotes are priced for purchase at par -- typically $1,000 per bond, and in increments of $1,000.
What is the Yield on InterNotes?
When at par, the yield on a purchase of semi-annual InterNotes will be the stated coupon rate. Subject to the creditworthiness of the issuer, the bond equivalent yield on monthly or quarterly pay InterNotes will be slightly higher than the stated coupon rate.
What Maturities are Offered?
New issue InterNotes are issued in a wide range of maturities. Weekly updates are available by subscription through this web site, or check with your brokerage firm/advisor to determine which maturities are available each week.
Will There be a Bond Certificate?
No. InterNotes are issued on a book-entry basis only. Ownership of InterNotes is evidenced on your brokerage statement.
How Do I Purchase InterNotes?
New issue InterNotes are offered through a network of over 600 broker dealers and asset managers. New issue InterNotes are not available for purchase by individual investors directly from Incapital LLC, a co-lead underwriter in InterNotes.
When Do I Get My Interest Payment?
Interest and principal payments on InterNotes are typically made on the 15th of the month. If you purchase a monthly pay note your first coupon payment will be the next calendar month on the 15th. If you purchase a semi-annual note, your first coupon payment will be on the 15th of the sixth month following the month of purchase. InterNotes mature on the 15th of the month of the stated maturity, or check provisions for callable notes.
Are InterNotes Callable?
New issue InterNotes may be callable or non-callable.
What Does Callable Mean?
With callable notes, the issuer has the right, but not the obligation, to return the investor's principal prior to the maturity date. Callable notes are callable by the issuer at a specified future date for a specified future price. This is referred to as "call risk". See the applicable prospectus for more detailed information on the features of callable notes.
Where Can I Get a Prospectus?
The prospectus for each InterNotes program is available from participating broker-dealers, or can be downloaded from this website
What is the Survivor's Option?
The survivor's option is a feature of InterNotes which allows the holder's estate to return (or "put") the bonds back to the issuer. In the event of death, with some restrictions and limitations, this feature is at the option of the estate. Investors are urged to read the applicable prospectus for more complete disclosure.
Like all debt instruments, InterNotes are subject to certain risks, including interest rate risk, call risk, counterparty risk, default and bankruptcy risk and the like.