senior debt

(redirected from Unsubordinated Debt)

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 ?
The capital securities are debt instruments, which are subordinated to the company's unsubordinated debt obligations and treated as equity in the consolidated financial statements under IFRS.
ETN's are a type of unsecured, unsubordinated debt security and have characteristics and risks similar to fixed income securities.
iPath ETNs typically have a 10 to 30-year maturity and are senior, unsecured, unsubordinated debt securities issued by Barclays, linked to the performance of a market index.
A Northern Rock spokesman said the additional guarantees were designed to maintain the credit ratings on the bank's unsubordinated debt, adding that if they were activated, the cost to the Treasury would be "a few hundred millions of pounds".
The guarantee will rank equally in right of payment with all of CVRD's other unsecured and unsubordinated debt obligations.
The notes are unsecured and will rank equally in right of payment to all of Ladder's existing and future unsecured unsubordinated debt.
The senior notes will be MasTec's senior unsecured unsubordinated obligations and will rank equally in right of payment with any existing and future unsubordinated debt, and senior in right of payment to any existing and future subordinated debt.
The ETNs are senior, unsecured, unsubordinated debt securities linked to the performance of an underlying index.
The privately placed notes will be fully and unconditionally guaranteed by Kellogg, and will rank on parity with Kellogg's other unsecured and unsubordinated debt.
The guarantee will rank pari passu with all of CVRD's other unsecured and unsubordinated debt obligations.
The Notes are unsecured and rank equally with all existing and future unsecured and unsubordinated debt of Rockwell Collins.
ETN's are senior unsecured unsubordinated debt securities issued by an underwriting bank that are designed to provide returns that are linked to a particular benchmark less investor fees.