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 ?
Under the terms of the banking industry bailout, Spain cannot use EU cash to compensate junior note holders.
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.
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.
This bifurcation among TruPS should translate into a generally positive trend for senior CDO note holders and potentially negative for junior note holders, as better capitalized banks are likelier to redeem and repay senior notes while weaker banks would be left in the pool to support the junior notes.
This extension when coupled with the earlier discounted payoff of the junior note is a terrific outcome for CapLease and our stockholders.
In the current transaction, HFF marketed the junior note on behalf of the sellers, a venture comprised of Asian and European insurance companies.
Following the modification, Talmage was engaged as the exclusive advisor to Fillmore Capital Partners, LLC of San Francisco in the successful sale of their junior note secured by the portfolio.
Fitch notes that to date, P&G has executed redemptions at a slower pace relative to the redemption capacity offered by the hedge fund assets, which may serve to preserve the diversified nature of the portfolio so as to mitigate adverse selection for the junior note classes.
The default model was not re-run for the transactions as the outstanding ratings are either only 'AAAsf' and/or rated junior notes are present with no subordination; the transactions do not have revolving periods; and a review of pre-determined performance triggers indicates the transactions displays stable asset performance.

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