Secured bond

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Related to Secured Debentures: Unsecured Debentures

Secured bond

A bond backed by the pledge of collateral, a mortgage, or other lien, as opposed to an unsecured bond, called a debenture .

Secured Bond

A bond with collateral. That is, the issuer pledges a property or other asset to the bondholders and states that they may take ownership if the issuer defaults. For example, a municipality may secure a bond with future receipts on property taxes. Likewise, a company may secure its bonds with a factory. Secured bonds carry less risk than unsecured bonds and therefore have lower coupon rates, which reduces the issuer's borrowing costs. All secured bonds must be repaid before any unsecured bonds are repaid.

secured bond

A bond that is guaranteed with a pledge of assets. A bond might be secured with real estate.

Secured bond.

The issuer of a bond or other debt security may guarantee, or secure, the bond by pledging, or assigning, collateral to investors. If the issuer defaults, the investors may take possession of the collateral.

A mortgage-backed bond is an example of a secured issue, since the underlying mortgages can be foreclosed and the properties sold to recover some of or all the amount of the bond.

Holders of secured bonds are at the top of the pecking order if an issuer misses an interest payment or defaults on repayment of principal.

References in periodicals archive ?
Digital Angel(OTCBB: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that it has entered into a Securities Purchase Agreement with certain investors, including Hillair Capital Investments LLC, for the purchase of $2 million of senior secured debentures.
OTCBB: ENRJ) ("EnerJex", or the "Company"), a pure-play domestic onshore oil company, announced today that 100% of its remaining Senior Secured Debentures, in the aggregate amount of $2,676,436, have been converted into EnerJex common stock based on a price of $0.
These new convertible secured debentures have a five-year term, an 8.
These new convertible secured debentures would have a five-year term, an 8.
OTCBB:ETLO) announced today that it has executed an agreement to restructure its January 2008 and April 2008 Convertible 6% Secured Debentures with a principal amount of $5.
625 billion term loan and the $121 million of secured debentures are secured by a first lien on NMG's fixed and intangible assets, and have average recovery prospects (31%-50%).
With the termination of AWNA's secured credit facility, the collateral requirements of AWNA's senior secured notes and BFI's senior secured debentures have been released, and those notes and debentures are now senior unsecured obligations of their respective issuers.
7 million remaining of 10% Senior Secured Debentures were subordinated to the new credit facility and were also amended to remove certain covenants requiring the Company to meet certain oil production thresholds going forward.
If, as planned, AW's secured credit facility is replaced by an unsecured facility for the merged company, the collateral requirements for BFI's secured debentures would also be removed.
Cogeco's debt maturities over the next two years include US$150 million senior secured notes due in October 2008 (and related swaps) totaling C$239 million and C$150 million senior secured debentures in June 2009.
Other Income and Expense reflects the significant impact on our Statement of Operations of the transactions undertaken in connection with the sale of the Secured Debentures in April and May 2007.
As part of this plan, among other elements, the Company had indicated its intention to restructure the August 11, 2006 and October 13, 2006 secured debentures to permit it to reclassify certain debt to equity.