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Prior-Lien Bond
(redirected from Prior Lien Bond)

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Prior-lien bond
A bond usually arising from reorganization with precedence over another bond of the same issuing company that is equally secured.

Prior-Lien Bond
A bond with precedence over other secured and unsecured bonds from the same issuer. Coupon payments are owed on these bonds before other bonds; in other words, prior-lien bonds will default after other bonds from the same issuer. These bonds are usually the result of a company reorganization,

prior-lien bond
A bond with a priority claim over other bonds, both secured and unsecured, of the same issuer.


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With the refunding of prior lien bonds last year, the 1991 general resolution bonds now have a first claim on pledged revenues.
The prior lien bonds had a first mortgage and the general lien bonds a second mortgage on millions of acres of land and mineral rights.
8 million in outstanding (pre-refunding) prior lien bonds at 'AA+'; --$60 million in outstanding (pre-refunding) parity bonds at 'AA+'; The Rating Outlook is Stable.
 
 
 
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