junior debt

(redirected from Junior Note)

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 ?
"They are basically having the same discussions as we had a year ago, which is likely to see the owner put in a tiny amount of equity and wiping out the least secure debt," said one of Wind Hellas's former junior note holders.
The effect on the junior note holders is that principal payments are delayed until more senior note holders are fully paid.
As a factual matter, in each of the foregoing cases, if the junior lienholder had withheld consent to the sale of the property by the original borrower and had instead triggered a foreclosure, the foreclosure by the first deed of trust would have wiped out the lien of the second deed of trust, and there would have been little or nothing left to satisfy the deficiency owed on the junior note.
It has already completed one transaction this year; the sale of a $116 million junior note within a $369 million securitisation of mainly Dublin offices and retail assets to Northwood Investors, and has recently announced plans to sell two portfolios worth over $1.37 billion.
Under the terms of the banking industry bailout, Spain cannot use EU cash to compensate junior note holders.
Savanna will retain the $76.7 million junior note, with the $81 million senior note piece sold in this transaction to a separate account managed by Apollo Global Real Estate.
Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread.
The asset model for this annual review was not run, as the transactions do not have revolving periods, the outstanding ratings are only 'AAAsf' and a rated junior note is present with no subordination, the review of pre-determined performance triggers indicates the transactions display stable asset performance and there have been no significant changes to transaction structures.
Asset Analysis: The asset model for this annual review was not run, as the transactions do not have revolving periods, the outstanding ratings are only 'AAAsf' and a rated junior note is present with no subordination, the review of pre-determined performance triggers indicates the transactions display stable asset performance and there have been no significant changes to transaction structures.
Credit enhancement for each transaction consists of overcollateralization, subordination of junior notes, cash reserves, and excess spread.
The company said this SPV will fund 95% of the net purchase price of the receivables via senior notes and the remaining 5% via issuance of junior notes.
GLM US CLO 4 issued USD 516 million of AAA-rated senior notes with a weighted average coupon of L+1.33%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.90%.

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