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 ?
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.
The Junior Notes facility which is currently rated -ID with a stable outlook has been put on MARCWatch Positive with a potential upgrade upon conclusion of our on-going review on the facility.
The structures of Mecenate 2007 and Mecenate 2009 incorporate collateralised, non-rated junior notes, whose interest and principal deficiency ledgers (PDL) rank subordinate to the reserve funds in the interest revenue priority of payments.
Only the junior notes which are not rated by Moody's have been impacted.
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 event earned "strong official support from the mayor of Lisbon, Joao Soares," Junior notes.
The Junior Notes continue to be rated two notches below the long-term rating on the Senior Notes to reflect their subordination to the Senior Notes in respect of profit and principal payments.
The refinancing of Arqiva's existing debt was undertaken with the inaugural capital markets issuance of EeAu750 million senior notes (rated BBB/BBB by Standard & Poor's and Fitch) and EeAu600 million junior notes (rated B3/B- by Moody's and Fitch), alongside EeAu2.
Credit enhancement consists of overcollateralization, subordination of junior notes, cash reserves and excess spread.
The rating action affects the MYR 5 million outstanding Junior Notes as at end-September 2013," it said.

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