Secured debt


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Secured debt

Debt that has first claim on specified assets in the event of default.

Secured Debt

A debt on which payment is guaranteed by an asset or lien. This means that a secured debt has collateral; if the debtordoes not repay the debt in due course, the creditor has the legal right to take possession of the collateral and resell it to recover losses. In case of bankruptcy, the creditor is considered a secured creditor, which means the creditor receives proceeds from the sale of the collateral to satisfy the debt. If the collateral is insufficient, all secured creditors must have their debts satisfied before any unsecured creditors receive any funds.
References in periodicals archive ?
Nasdaq: ACAS) (the "Company") announced that it has given notice today to the holders of its secured debt due in 2013 that it will voluntarily prepay $107 million of the debt on November 29, 2010.
Example: A debtor excludes $100 of COD income from gross income ($20 from a secured debt + $80 from an unsecured debt); $40 of COD income (i.
In reviewing the change in secured debt weighting in each debt structure and the change in secured leverage between 2007 and Sept.
HCP (NYSE:HCP) announced that it has placed $140 million of 5-year secured debt on four of its senior housing assets and $179 million of 8-year secured debt on 12 of its senior housing assets.
s (Motorola) market capitalization over the past few months to below $50 billion, Fitch Ratings has examined LBO risk for Motorola by assessing the level of bondholder protection provided by bond indentures, specifically change of control provisions and limitations on secured debt.
Fitch believes the 'B-' senior unsecured debt could potentially be upgraded one notch based on the prospects for higher recovery rates as a result of the proposed reduction of secured debt in the capital structure.
NEW YORK -- A new study examining the distribution of Fitch's Recovery Ratings in their first full year after launch has revealed that the most common driver of Recovery Rating changes has been changes in the amount of secured debt in issuer capital structures, affecting in particular Recovery Ratings on senior unsecured bonds.
The rating also reflects the new notes senior unsecured position relative to a substantial amount of senior secured debt upon the closing of the refinancing.
Offsetting in part this benefit is the amendment of the security package for RRI's secured debt holders.
In addition Hexion expects to raise $825 million of senior secured debt (the "Secured Debt Financing") in connection with its offer to purchase the Notes.
Upon closing of the acquisition-related financing, Fitch estimates that secured debt of $1.
As of June 30, 2006, HCN's portion of secured debt was 4% of total debt.