Subordinated


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Subordinated

A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt.

Subordinated

Describing a class of security that, in the event of liquidation, is prioritized lower than other classes of security. For example, a subordinated security may be an unsecured loan, which has no collateral. Should the issuer be liquidated, all secured bonds and debts must be repaid before the subordinated security is repaid. A subordinated security carries higher risk but also pays higher returns than other classes. See also: Junior Debt.
References in periodicals archive ?
The study found that existing evidence supports the use of subordinated debt to encourage market discipline.
Unlike conventional loans, which are tied to and determined by asset values, accounts receivable and debt-to-equity ratios, a subordinated loan is based on cash flow, earnings and management's track record.
Interest payments on the Preferred HITS must be deferred if interest on the junior subordinated notes or dividend payments on the preferred stock are deferred.
The senior subordinated downgrade reflects Sanmina layering $600 million of senior unsecured debt on top of the senior subordinated debt, resulting in lower recovery prospects for the subordinated debt.
New York City time, on October 2, 2006, $96,735,000 in aggregate principal amount of the Senior Subordinated Notes had been properly tendered and not withdrawn as part of the private exchange offer.
today announced the sale of $350 million principal amount of Series B Enhanced Junior Subordinated Debentures due October 1, 2066.
4% Contingent Convertible Subordinated Notes and 2.
The Senior Subordinated Notes will rank junior in right of payment to all of MTR's existing and future senior indebtedness (including MTR's senior secured credit facility and its 9 3/4% Senior Notes due 2010) and will rank equal in right of payment with any senior subordinated indebtedness that MTR may incur.
Holders of Subordinated Notes who validly tendered their Subordinated Notes after the consent payment deadline but prior to the expiration time will receive $1,037.
GFSI will pay a consent fee of $20 per $1,000 in principal amount of Senior Subordinated Notes tendered on or prior to 5:00 P.
NYSE:CNB) announced yesterday the pricing terms of the new series of Subordinated Notes (the "New Notes") which are to be issued in exchange for its outstanding 9-3/8% Subordinated Notes due 2011 and 8% Subordinated Notes due 2009.