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Senior Issue

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Dictionary Says

Definition of 'Senior Issue'

An issue of bonds, preferred stock or other securities that represents the first priority lien on the issuer's assets or earnings. Senior issues have a higher priority claim on a firm's dividends, interest payments, or in case of a bankruptcy, the value salvaged from a liquidation.
Investopedia Says

Investopedia explains 'Senior Issue'

Priority levels may change in the subordinated debt structure. An issue that is considered senior may lose that title in certain situations. For example, if a firm claims bankruptcy and begins acting as a debtor in possession (DIP), it may attempt to raise more funds to keep operations going. A new lender may require its lien to be given top priority, forcing the current senior issue of bonds down the claims ladder.

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