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.
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.
Proceeds will be used to refund approximately $108 million prior lien bonds, to pay for various utility capital improvements, and pay issuance costs.
The financing plan, which was placed into action with the issuance of just over $160 million in April and a second issuance in June of over $175 million, calls for a refunding of all outstanding prior lien bonds and approximately $84 million in new capital.
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).
Primary sources for payment include revenues subordinate to the lien and pledge for the prior lien bonds, amounts in the payment and construction funds, and proceeds of notes and other evidences of indebtedness.
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).
The bonds are secured on a subordinated basis to the Projects' Prior Lien Bonds by payments made pursuant to the related Projects' Net Billing Agreements with the United States of America, Department of Energy acting by and through the Administrator of the Bonneville Power Administration.
8 million in outstanding (pre-refunding) prior lien bonds at 'AA+';
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