Unsecured Loan Stock

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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 ?
0 million on its redeemable unsecured loan stocks (RULS), meeting a distribution test that includes a minimum forward-looking post-distribution finance service cover ratio (FSCR) of 1.
0 million and classification of the amount of coupon payable under the redeemable convertible unsecured loan stocks (RCULS) as part of equity.
The plan entails a refinancing and full redemption of the Senior Sukuk via a MYR 400 million Syndicated Term Loan (STL) and MYR 263 million of Redeemable Convertible Unsecured Loan Stocks.