medium-term note program (MTN program)
USA
medium-term notes are usually issued in connection with a medium-term note program, a funding program used by issuers to receive bond debt funding on a regular and continuous basis. Their programs can include more than one issuer, although the issues are independent up to a maximum amount authorized. This acts as an advantage to issuers as they are not required to produce extensive legal documents each time they want to issue notes. Instead, a series of underlying documents are amended with each issue by a pricing supplement which sets out the terms of each specific issue of notes. This makes access to debt funding easier and cheaper. Many large companies establish medium-term note programs to finance their medium term financing needs.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.