junior debt

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Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Junior Debt

A class of debt that, in the event of insolvency, is prioritized lower than other classes of debt. The most common kind of junior debt is an unsecured loan, which has no collateral. Another kind of junior debt is a secured loan in which another loan has priority on the collateral; a second mortgage is an example of a secured junior debt. This class of debt carries higher risk but also pays higher interest than other classes.

junior debt

A class of debt that is subordinate to another class of debt issued by the same party. Junior debt is more risky for an investor to own, but it pays a higher rate of interest than debt with greater security. Debentures are junior debt. Compare senior debt.
References in periodicals archive ?
Under the terms of the banking industry bailout, Spain cannot use EU cash to compensate junior note holders.
7 million junior note, with the $81 million senior note piece sold in this transaction to a separate account managed by Apollo Global Real Estate.
They are basically having the same discussions as we had a year ago, which is likely to see the owner put in a tiny amount of equity and wiping out the least secure debt," said one of Wind Hellas's former junior note holders.
The effect on the junior note holders is that principal payments are delayed until more senior note holders are fully paid.
This bifurcation among TruPS should translate into a generally positive trend for senior CDO note holders and potentially negative for junior note holders, as better capitalized banks are likelier to redeem and repay senior notes while weaker banks would be left in the pool to support the junior notes.
This extension when coupled with the earlier discounted payoff of the junior note is a terrific outcome for CapLease and our stockholders.
The interest rate for the Junior Note is 10% per annum if paid in cash, or 14% per annum if paid in kind, which is at DynTek's election for the first three years.
In the current transaction, HFF marketed the junior note on behalf of the sellers, a venture comprised of Asian and European insurance companies.
Following the modification, Talmage was engaged as the exclusive advisor to Fillmore Capital Partners, LLC of San Francisco in the successful sale of their junior note secured by the portfolio.
The transactions, totaling $1,541,500,000, included the closing of senior and junior notes, senior loans, and the financing of aircraft on operating leases.
Contract Awarded for it - junior notes administrator fa578496 11.
Having hunted for many years, I've found that reports about big deer come and go," Junior notes.

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