prior-lien bond

(redirected from Prior Lien Bond)

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.
References in periodicals archive ?
The upgrade to 'AA+' reflects strong coverage of CB&A debt service attributable to recent growth in non-AV revenues, lower prior lien bond debt service combined and limited plans for additional non-AV issuance.
However, the prior lien bond ordinance (under which AWU and AE issued combined utility system bonds prior to adoption of the master ordinance) remains in effect as long as combined utility system bonds are outstanding.
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.
Proceeds will be used to refund approximately $108 million prior lien bonds, to pay for various utility capital improvements, and pay issuance costs.
25% unified sales tax, less a small portion of revenues dedicated to prior lien bonds, and a first lien on revenues deposited into the Bond Retirement and Interest Fund (BIBRI).
A debt service guarantee for TMPA's prior lien bonds, contained in the PSCs since 1976, requires members to scale up their respective proportions of debt service payments to cover any defaulting member's share.
75% of the state's share of total revenues dedicated to prior lien bonds, and a first lien on revenues deposited into the Bond Retirement and Interest Fund (BIBRI).
8 million in outstanding (pre-refunding) prior lien bonds at 'AA+';
The pledge of 7% general HOT revenues to the series 2008 bonds will be subordinate to the pledge on the prior lien bonds remaining outstanding upon refunding completion.
The 2008 bonds are payable on a subordinated basis to outstanding Energy Northwest prior lien bonds.
Upon the refunding of the prior lien bonds from the 2007 transaction, the general ordinance will become the senior and governing lien.
The 2007 bonds are payable on a subordinate basis to outstanding Energy Northwest prior lien bonds.
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