A debt instrument which expressly has a higher pri... Add a comment
Debt whose terms in the event of bankruptcy, require it to be repaid before subordinated debt receives any payment.
This is the element of a financial package which consists of bank lending. It is senior because, if things go wrong, the lender has higher priority than those who provided equity or mezzanine finance.
'Vanilla' debt with first ranking priority and repayment. May also be referred to as an A, B or C note if more than one debt instrument is used.
debt which has a priority claim on the assets of a company.
A debt instrument that expressly has a higher priority for repay-ment than that of general unsecured creditors. Typically long-term acquisition financing.
Debt that has contractually superior rights compared to other debt of a company. The superior rights can be with respect to priority of payment of principal or interest, or both, as well as with respect to collateral in which the holders of both senior debt and junior debt have a security interest.
Debt which is not subordinated debt.
Secured debt which ranks first in terms of repayments in the event of a default (see also junior debt).
Debt provided by a bank, usually secured and ranking ahead of other loans and borrowings in the event of a winding up.
A senior debt issue ranks before other issues in terms of claims on assets in the event of a company break-up. For example, senior bonds rank before junior bonds, which rank before senior debentures, which rank before junior debentures, etc.
A loan that has a higher priority in case of a liquidation of the asset or company.
Long-term banking finance in an LBO, generally granted from 5 to 8 years. Senior debt implies that the “lender” has priority over the other lenders involved in the structure. Interest and annual repayments have priority over mezzanine debt. Distinction is usually made between redeemable senior debt and bullet senior debt, of which principal repayment takes place at expiration whereas interests are paid annually.
Debt that must be repaid before subordinated debt receives any payment in the event of default.
A phrase used to describe secured medium or long term bank debt provided to a company, often as part of a finance package also including mezzanine finance and development capital. Its seniority means it ranks ahead of other finance in terms of security.
Debt that is paid before junior debt in the event of the issuer's bankruptcy.... more on Senior debt
Unsecured debt which ranks ahead of other (subordinated) loans for repayment, but after loans which are secured.