Make Whole Call – a type of call provision on a bond allowing the borrower to pay off remaining debt early. The borrower has to make a lump sum payment equal the greater of 100% bond nominal and the net present value (NPV) of future coupon payments that will not be paid because of the call. The discount rate for NPV calculation is to be the yield of reference government bond plus some initially determined premium.
A make whole call will be defined in the indenture. The issuer doesn’t expect to have to use this type of provision, but if the issuer does, investors will be compensated, or "made whole."
The make whole call is also referred to as the Doomsday Call or the Canada call because bonds issued by Canadian corporations often include them.