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Definition of 'Senior Debt'
Borrowed money that a company must repay first if it goes out of business. Companies have a number of options for obtaining financing, including bank loans and the issuance of bonds and stocks. Each type of financing has a different priority level in being repaid if the company decides to liquidate. If the company goes under, the holders of each type of financing have different levels of rights to the company's assets.
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Investopedia explains 'Senior Debt'
If a company goes bankrupt, senior debtholders, who are often bondholders or banks that have issued revolving credit lines, are most likely to be repaid, followed by junior debt holders, preferred stock holders and common stock holders. Senior debt is secured by collateral, and that collateral can be sold to repay the senior debt holders. As such, senior debt is considered lower risk and carries a relatively low interest rate. Even though senior debtholders are the first in line to be repaid, they will not necessarily receive the full amount they are owed in a worst-case scenario.
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Search results for 'Senior Debt'
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http://stocks.investopedia.com/stock-analysis/2011/Three-Reasons-To-Own-PennantParks-Little-Sister-PFLT-PNNT-BKLN-FLTR1115.aspx
... there. Essentially there are five main types of debt: revolving, term loan,
senior debt, subordinated debt and mezzanine debt. Often ...
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http://www.investopedia.com/articles/bonds/08/profit-from-bankruptcy.asp
... If the company has $8 million of assets, $8 million of senior debt, and $2 million
of junior debt, the senior debt might be a great buy, but the junior debt ...
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http://www.investopedia.com/articles/mutualfund/08/prime-rate-funds.asp
... Pros The bonds that prime-rate funds purchase are often referred to as senior debt,
because they are backed by collateral, and, in the event the bond issuer ...
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http://www.investopedia.com/articles/mutualfund/10/floating-rate-mutual-funds.asp
... Floating-rate loans are classified as senior debt, and are usually collateralized
by specific assets, like the borrower's inventory, receivables or property. ...
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http://stocks.investopedia.com/stock-analysis/2009/Four-Companies-Buying-Its-Own-Debt-XLNX-CIT-AMKR-AN0218.aspx
... Autonation (NYSE:AN) also bought back some of its debt. In the quarter ending December
31, 2008, the company repurchased $144.8 million of its senior debt. ...
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http://www.investopedia.com/university/advancedbond/advancedbond1.asp
... On the other hand, if you own a subordinated (junior) debt security, you will get
paid out only after the senior debt holders have received their share. ...
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http://www.investopedia.com/articles/basics/04/040804.asp
... The short answer is that all debt - whether short-term debt, senior debt or junior -
should be considered equal in the calculation of the interest-coverage ...
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http://financialedge.investopedia.com/financial-edge/1111/How-Much-Has-The-Taxpayer-Recouped-From-TARP.aspx
... Because the Treasury requires an equity stake in the form of preferred stock, warrants
or senior debt securities, all companies receiving TARP money have to ...
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http://www.investopedia.com/articles/bonds/08/bond-market-basics.asp
... to investors. Senior debt is paid first, then junior (subordinated) debt,
and stockholders get whatever is left over. (To learn ...
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http://www.investopedia.com/articles/06/ETNvsETF.asp
... ETNs are structured products that are issued as senior debt notes by Barclays,
while ETFs represent a stake in an underlying commodity. ...
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