It seems that Goldman Sachs (NYSE: GS) is aggressively looking at their capital structure, as they have announced multiple plans this month to retire debt. A call provision allows a borrower to retire a bond before it’s maturity date. Strong companies tend to attach these to bond issuances, so that if interest rates fall they can retire the bonds, and re-issue during a more favorable credit environment. Goldman Sachs (NYSE: GS) announced on November 5th that they are exercising one such call option. Goldman Sachs Group Inc. is exercising the option on a step-up coupon with maturity of February 26, 2019. The total amount of the redemption is $7 million, and will retire 100 percent of the amount remaining. This will effectively full retire Security ID: 38143UGL9 on November 26, 2010. As interest rates are near historic lows, and capital positions shore up, perhaps we will see more calls exercised in the coming months.
