Senior debt

Senior debt

In finance, senior debt, frequently issued the form of a senior note, is debt that takes priority over other debt securities sold by the issuer. Senior debt has greater seniority in the issuer's capital structure than subordinated debt. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment.

Senior debt is often secured by collateral on which the lender has put in place a first lien. Usually this covers all the assets of a corporation and is often used for revolving credit lines. It is the debt that has priority for repayment in a liquidation.

It is a class of corporate debt that has priority with respect to interest and principal over other classes of debt and over all classes of equity by the same issuer.

External links

* [ Senior debt]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • senior debt — 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… …   Law dictionary

  • Senior debt — Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment. The New York Times Financial Glossary * * * senior debt senior debt ➔ debt * * * senior debt UK US noun [U] FINANCE ► debt that will be paid back …   Financial and business terms

  • senior debt — Obligations of an issuer for which repayment has contractually been given a priority that is higher than the repayment priority of other debts of the same obligor. This arrangement may arise from either a specific subordination agreement or a… …   Financial and business terms

  • Senior Debt — Borrowed money that a company must repay first if it goes out of business. Companies have a number of options for obtaining financing, including bank loans and the issuance of bonds and stocks. Each type of financing has a different priority… …   Investment dictionary

  • Senior Debt — Senior Debenture; engl. Bezeichnung für vorrangiges Fremdkapital. Im Rahmen der ⇡ Mezzanine Finanzierung handelt es sich bei den S.D. um Fremdkapital, das dem vorrangigen Fremdkapital im Rang zwar nachgestellt ist, jedoch durch seinen sekundären… …   Lexikon der Economics

  • senior debt — / si:niə det/ noun a debt which must be repaid in preference to other debts (such as a first mortgage over a second mortgage) …   Dictionary of banking and finance

  • senior debt — /sinjə ˈdɛt/ (say seenjuh det) noun Finance a form of borrowed finance which has the highest priority in the ranking of claims for repayment in the case of default, liquidation, etc.; usually in the form of a bank loan and with secure collateral …   Australian-English dictionary

  • partners senior debt — senior loan Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • Debt restructuring — is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it… …   Wikipedia

  • senior loan — See senior debt. Related links alphabet notes Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”