junior debt

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
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%.
The earlier expected repayment of CPUK's class B notes, lesser degree of subordination and cash sweep feature explains the 'B' rating, which is one notch higher than Arqiva's junior notes.
In addition, she represents companies on the sale and purchase of commercial mortgage and mezzanine loans, loan portfolios, junior notes, participation interests, and pledges to repurchase facilities.
The net proceeds from the offerings of Legg Mason's senior notes and Junior notes will be used, together with a USD 500m draw on the company's revolving credit facility, to finance the purchase prices for the acquisitions and to replenish cash on the balance sheet used to close the RARE transaction in October 2015.
"Having hunted for many years, I've found that reports about big deer come and go," Junior notes. "Also, the word 'big' is a pretty subjective term, which makes determining a buck's true size a very difficult proposition."
The Junior Notes facility which is currently rated -ID with a stable outlook has been put on MARCWatch Positive with a potential upgrade upon conclusion of our on-going review on the facility.
especially junior notes, to the potential forced liquidation of
Only the junior notes which are not rated by Moody's have been impacted.
Lehnacker notes, "If you issue senior notes globally, it is usual for the junior notes to be sold in Australian dollars.

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