senior debt

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Senior debt

Debt whose terms in the event of bankruptcy, require it to be repaid before subordinated debt receives any payment.

Senior Debt

A debt that has higher priority compared to another in the event of liquidation. That is, if a company goes bankrupt and is liquidated, holders of secured debt must be paid before holders of unsecured debt. In this case, the secured debt is senior debt with respect to the unsecured debt. It is a type of senior security. See also: Absolute priority rule.

senior debt

A class of debt that has priority with respect to interest and principal over other classes of debt and over all classes of equity by the same issuer. In the event of financial difficulties or liquidation of the borrower's assets, holders of senior debt will have a priority claim. Most loans from financial institutions and certain high-grade debt securities such as mortgage bonds are senior debt. Because senior debt has a relatively secure claim, it is less risky from the point of view of the lender and it pays a lower rate of interest compared with debt of the same issuer having a subordinate claim. Compare junior debt.
References in periodicals archive ?
Fitch believes the failure to meet the extended 10-K deadline is an event of default under the terms of the company's senior note indenture and credit facility.
Fitch expects the second priority senior note interest payments to continue to be partly funded by principal proceeds from the $9.
There is no provision under the terms of any senior note issue that bars a spin-off of SPC from parent, Southern Company (SO; IDR rated 'A' with a Stable Outlook by Fitch).
LOS ANGELES -- KB Home (NYSE:KBH), announced today that on October 26, 2006, it received a letter stating it serves as a notice of default under the indenture related to its 7-1/4% Senior Notes due 2018 (the "7-1/4% Senior Notes") from an entity claiming to manage funds that beneficially own more than 25% of the 7-1/4% Senior Notes.
The three series of senior notes are the Issuer's 103/4% Senior Notes due April 1, 2013 (CUSIP No.
Mediacom Broadband LLC and Mediacom Broadband Corporation, wholly-owned subsidiaries of Mediacom Communications Corporation (NASDAQ: MCCC), announced today that they have agreed to sell $300 million principal amount of 8-1/2% senior notes due 2015 (the "Senior Notes").
The three series of senior notes are the Issuer's 10 3/4% Senior Notes due April 1, 2013 (CUSIP No.
Vertis"), has commenced (i) a private exchange offer, a tender offer and a consent solicitation relating to its outstanding 131/2 percent Senior Pay-in-Kind Notes due 2014 (the "Senior Notes"), and (ii) a private exchange offer and a consent solicitation relating to its 181/2 percent Senior Secured Second Lien Notes due 2012 (the "Existing Second Lien Notes" and, together with the Senior Notes, the "Notes") held by eligible holders (collectively, the "Offers").
Remaining term loan availability under the accordion feature for either share repurchases or redemption of ACS' existing senior notes was $2 billion as of Dec.
Orbital Sciences Corporation (NYSE:ORB) announced today that, in connection with the previously announced cash tender offer and consent solicitation for its outstanding 9% Senior Notes due 2011, Orbital has received the requisite consents from holders of the 9% Senior Notes to amend the indenture governing the 9% Senior Notes (the "Indenture").
The Senior Notes consist of US$465 million aggregate principal amount of 8.
DUBLIN, Ireland -- Elan Corporation, plc ("Elan") today announced the pricing of the offering of US$615 million aggregate principal amount of Senior Notes by its wholly-owned subsidiaries, Elan Finance public limited company and Elan Finance Corp.

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