Unsecured Loan Stock


Also found in: Acronyms.

Unsecured Loan Stock

A loan made to a company with no collateral. In many respects, unsecured loan stock behaves like a bond (both offer fixed returns, have maturity dates, and so forth). However, unlike a bond, in the event of default or liquidation, the holder of unsecured loan stock does not have a claim on the company's assets. For that reason, unsecured loan stock carries higher risk than a bond. Despite the name, it has nothing to do with shares of stock.
References in periodicals archive ?
22 December 2010 - MARC today maintained its BB- rating with "negative" outlook on Olympia Industries Berhad's (KUL:OLYMPIA) outstanding MYR73m (USD23m/EUR18m) nominal value Redeemable Unsecured Loan Stocks (RULS).
The company registered losses before taxation of MYR 4.5 million which were notably lower than projected losses before taxation of MYR 656.0 million on the back of higher facilities income and other income of MYR 222.0 million and classification of the amount of coupon payable under the redeemable convertible unsecured loan stocks (RCULS) as part of equity.
5 February 2010 - Malaysian Rating Corp (MARC) revised to "negative" from "stable" the outlook while keeping the rating at BB- on the redeemable unsecured loan stocks (RULS) of local Olympia Industries Bhd (KUL:3018).
By lengthening the debt maturity profile of its senior debt, "KEV is expected to have sufficient liquidity to service the interest and scheduled principal payments on its outstanding redeemable unsecured loan stocks (RULS).
5 February 2010 - Malaysian Rating Corp (MARC) cut to B from BB- the rating on the redeemable unsecured loan stocks (RULS) of local diversified holding company DutaLand Bhd (KUL:3948).