CCO » Topics » Original Issue Discount

This excerpt taken from the CCO 8-K filed Dec 11, 2009.

Original Issue Discount

Except where otherwise indicated or where the context otherwise requires, in this offering circular, we have assumed that the notes will be issued at 100% of their principal amount. If the notes are issued at a discount to the principal amount, the proceeds to us will be reduced by the amount of any such discount. In addition, if the notes are issued with more than a de minimis amount of original issue discount (“OID”), for U.S. Federal income tax purposes, U.S. Holders will generally be required to include such OID as ordinary income over the life of the notes in advance of the receipt of cash attributable to that income regardless of their regular method of accounting. Special rules apply to non-U.S. Holders. For more information, see “Certain U.S. Federal Income Tax Considerations.”

 

 

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