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Junior Debt
(redirected from Junior Note)

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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.


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Through the agreement announced in court, holders of junior notes issued by holding company Six Flags, Inc.
5 percent to 91 percent of their face value and junior notes with a face value of up to GBP150m at 15 percent to 74.
The Company will therefore lack the resources to redeem the TruPS and retire the Junior Notes and they will remain outstanding.
 
 
 
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