A bond usually arising from reorganization with precedence over another bond of the same issuing company that is equally secured.
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A bond with precedence over other secured and unsecured bonds from the same issuer. Coupon payments are owed on these bonds before other bonds; in other words, prior-lien bonds will default after other bonds from the same issuer. These bonds are usually the result of a company reorganization,
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A bond with a priority claim over other bonds, both secured and unsecured, of the same issuer.
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.