Updated with comments from Guggenheim Securities analyst David Darst.
The company announced on Friday that it had "extinguished $4.3 billion of structured putable borrowings that had a weighted-average cost of 4.21%," using cash on hand to repay the borrowings. Hudson City CEO Ronald Hermance said that the company was "doing just what our customers are doing: paying down expensive debt in this prolonged period of depressed market interest rates."
Investors were obviously pleased at the prepayments of such high-cost borrowings, as the shares rose 7% in morning trading, to $6.17.
|Hudson City Bancorp CEO Ronald Hermance|
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