senior debt

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Senior debt

Debt whose terms in the event of bankruptcy, require it to be repaid before subordinated debt receives any payment.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Senior Debt

A debt that has higher priority compared to another in the event of liquidation. That is, if a company goes bankrupt and is liquidated, holders of secured debt must be paid before holders of unsecured debt. In this case, the secured debt is senior debt with respect to the unsecured debt. It is a type of senior security. See also: Absolute priority rule.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

senior debt

A class of debt that has priority with respect to interest and principal over other classes of debt and over all classes of equity by the same issuer. In the event of financial difficulties or liquidation of the borrower's assets, holders of senior debt will have a priority claim. Most loans from financial institutions and certain high-grade debt securities such as mortgage bonds are senior debt. Because senior debt has a relatively secure claim, it is less risky from the point of view of the lender and it pays a lower rate of interest compared with debt of the same issuer having a subordinate claim. Compare junior 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 ?
M2 EQUITYBITES-September 5, 2019-MPLX LP prices issue of USD2.0bn senior notes
Global Banking News-September 5, 2019-MPLX LP prices issue of USD2.0bn senior notes
BANKING AND CREDIT NEWS-August 8, 2019-Evercore closes senior notes offering
The tranches distributed as follows: USD one billion-worth senior notes with 2.75 percent yield and maturity date of 2022; USD 2 billion senior notes due 2024; USD 3 billion senior notes with 3.5 percent yield due 2029; USD 3 billion senior notes with 4.25 percent yield due 2039; and USD 3 billion senior notes with 4.375 percent yield due 2049, Aramco said in a press statement.
has priced an offering to sell $1.25 billion of senior notes, consisting of $700 million of 10-year senior notes at a coupon of 4.35 percent and $550 million of 5.2 percent senior notes due 2048 through an add-on to its existing issue.
Travel Business Review-March 8, 2019-Bombardier closes USD 2bn in senior notes due 2027
Chicago: Fitch Ratings has assigned a senior unsecured debt rating of 'BBB' to Willis North America Inc.'s new issue of $600 million 4.5% senior notes due 2028 and $400 million 5.05% senior notes due 2048.
M2 PHARMA-December 5, 2017-Valeant Pharmaceuticals Launches Private Offering of Senior Notes
United States-based Chesapeake Energy Corporation (NYSE: CHK) has priced its private placement to eligible purchasers of USD300,000,000 aggregate principal amount of additional 8.00 percent senior notes due 2025 at 101.25 percent of par, plus accrued interest from July 15, 2017 and USD550,000,000 aggregate principal amount of additional 8.00 percent senior notes due 2027 at 99.75 percent of par, plus accrued interest from June 6, 2017.
NORDIC BUSINESS REPORT-November 21, 2016-Com Hem confirms satisfaction of financing conditions for redemption of 2014 senior notes
(Issuer) has commenced private exchange offers certain senior notes.

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