Are Senior Notes Secured?

Are bonds secured?

A secured bond is a type of investment in debt that is secured by a specific asset owned by the issuer.

The asset serves as collateral for the loan.

Secured bonds may also be secured with a revenue stream that comes from the project that the bond issue was used to finance..

Are term loans secured?

They can be secured by an asset you own, by what they are used to purchase, or unsecured (no collateral required). … Long-term loans can be used for many business purposes, including purchase of machinery and equipment, inventory, real estate, construction, or business expansions.

What is a senior secured bond?

Senior Secured Bond means a debt security (that is not a loan) that is (a) issued by a corporation, limited liability company, partnership or trust and (b) secured by a valid first priority perfected security interest on specified collateral.

What is a senior security?

A senior security is one that ranks higher in terms of payout ranking, ahead of more junior or subordinate debt. Secured and senior debt is paid first, in the event a company runs into financial trouble.

What is senior leverage?

Senior Leverage Ratio means, with respect to any Person and its Subsidiaries for any period, the ratio of (a) the amount of Consolidated Funded Indebtedness of such Person and its Subsidiaries as of the end of such period (excluding any Subordinated Indebtedness of such Person and its Subsidiaries then outstanding) …

What are senior unsecured bonds?

Senior Unsecured Bonds Senior unsecured corporate bonds are in most respects just like senior secured bonds with one significant difference: There is no specific collateral guaranteeing them. Other than that, such senior bondholders enjoy a privileged position in the event of default with respect to the payout order.

What is senior equity?

Senior Equity Interests means any Equity Interests of the Company the holders of which have rights to any distribution or payment out of the assets of the Company upon a Liquidation Event, or rights of redemption or rights upon distributions otherwise ranking senior to, or with preference or priority over, the rights …

How do senior notes work?

A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation. Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds.

Are senior notes secured or unsecured?

In finance, senior debt, frequently issued in the form of senior notes or referred to as senior loans, is debt that takes priority over other unsecured or otherwise more “junior” debt owed by the issuer. Senior debt is often secured by collateral on which the lender has put in place a first lien. …

What does senior secured notes mean?

Senior Secured Notes means secured or unsecured notes or other debt of the Company issued after the Closing Date, and the Indebtedness represented thereby; provided that (a) the terms of which do not provide for any scheduled repayment, mandatory redemption or sinking fund obligations prior to the Latest Maturity Date …

What is super senior debt?

Super senior debt In deals where high yield bonds provide the only term debt in the structure, a super senior revolving credit facility (RCF) may be put in place to provide liquidity. … The rights of the parties will be regulated by a super senior intercreditor agreement.

What are senior issues?

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