junior debt


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Related to junior debt: Subordinated debt, senior debt, Subordinated bonds, Mezzanine debt

Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Junior Debt

A class of debt that, in the event of insolvency, is prioritized lower than other classes of debt. The most common kind of junior debt is an unsecured loan, which has no collateral. Another kind of junior debt is a secured loan in which another loan has priority on the collateral; a second mortgage is an example of a secured junior debt. This class of debt carries higher risk but also pays higher interest than other classes.

junior debt

A class of debt that is subordinate to another class of debt issued by the same party. Junior debt is more risky for an investor to own, but it pays a higher rate of interest than debt with greater security. Debentures are junior debt. Compare senior debt.
References in periodicals archive ?
With nearly half of the [pounds sterling]244 billion of outstanding debt against UK commercial property needing to be repaid over the next two years, and with all banks facing tighter regulatory capital constraints, Matrix said it believes that the severe imbalance between the supply and demand of debt will continue to provide an opportunity for, not only, borrowers to find much needed debt terms but also for investors to earn consistent, high income returns from secured junior debt.
Bank of America Corp (NYSE: BAC) is said to be looking to sell stock and senior debt in order to retire junior debt and preferred stock.
Doug has more than twelve years of finance industry experience, most recently as an operating director with Arsenal Capital Partners, a New York-based private equity firm and for the six prior years with a Chicago-based provider of senior debt, junior debt and equity.
PRESENTERS Moderator: -- John Brignola, co-founder of LBC Credit Partners, headquartered in Philadelphia, a mezzanine fund that provides junior debt to middle-market businesses Panel: -- Michael B.
LBC Credit Partners is a leading mezzanine fund providing privately negotiated junior capital to middle market businesses with revenues generally less than $750 million and junior debt requirements of $10-$50 million.
The ABT for the junior bonds requires that historical and projected net pledged revenues cover net senior and junior debt service (defined as junior debt service minus earnings on the junior debt service funds) by at least 1.
DALLAS, DENVER and TAMPA, April 30 /PRNewswire-FirstCall/ -- Stonehenge Growth Capital ("SGC"), the principal investment group of Stonehenge Capital Company, LLC ("Stonehenge"), has raised a $200 million junior debt investment fund, bringing its total assets under management to $735 million.
The 'A-' rating on both the senior and junior debt reflects the little financial coverage distinction between the two lien levels based on existing debt secured by airport net revenues.
Ben Branch, chapter 7 trustee for the bankruptcy estate of Bank of New England Corporation ("BNEC"), announced today that as a result of a bankruptcy court approved mediation session held on Tuesday, November 22, 2005, an agreement in principle (the "Agreement") was reached between representatives of the holders of each of the senior debt securities and the junior debt securities of BNEC.
Monroe Capital is a private investment firm providing senior and junior debt and equity co-investments to middle-market companies in the U.
Goldberg will advance the bank's expertise in growth and acquisition capital, junior debt and mezzanine financing.
Under the amended terms of its Senior Credit Facility, the senior secured debt to cash flow covenant threshold required before CanWest Media will be permitted to repay junior debt has been amended from 3.

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