Subordinated Debt definition: Copy, customize, and use instantly
Introduction
The term "Subordinated Debt" refers to a class of debt that ranks below other debts in the event of liquidation or bankruptcy. These debts are typically riskier for creditors, as they are paid only after senior debts have been settled.
Below are various examples of how "Subordinated Debt" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Subordinated Debt" as lower-ranking debt
This definition ties "Subordinated Debt" to its position lower than senior debt.
"Subordinated Debt" means debt that ranks below senior debt in terms of repayment priority, often bearing higher interest rates due to its higher risk.
Definition of "Subordinated Debt" as a form of unsecured loan
This definition connects "Subordinated Debt" to its unsecured nature.
"Subordinated Debt" refers to an unsecured loan that is repaid only after more senior obligations have been fulfilled, typically carrying a higher interest rate to compensate for the risk.
Definition of "Subordinated Debt" as debt in liquidation priority
This definition applies "Subordinated Debt" to liquidation scenarios.
"Subordinated Debt" means a type of debt that ranks below other forms of debt in terms of priority for repayment in the event of a liquidation or bankruptcy.
Definition of "Subordinated Debt" as high-risk debt
This definition ties "Subordinated Debt" to the high-risk nature of such loans.
"Subordinated Debt" refers to debt that is lower in repayment priority than senior debt and is often associated with higher risk and higher returns for investors.
Definition of "Subordinated Debt" as a bond type
This definition connects "Subordinated Debt" to bonds issued by companies.
"Subordinated Debt" means bonds issued by a company that are subordinate to other debts, giving bondholders lower priority in case of liquidation.
Definition of "Subordinated Debt" as a type of mezzanine financing
This definition applies "Subordinated Debt" to mezzanine financing.
"Subordinated Debt" refers to debt used in mezzanine financing, which is typically junior to senior debt and often used to finance expansion or acquisition activities.
Definition of "Subordinated Debt" as debt in a capital structure
This definition ties "Subordinated Debt" to a company's capital structure.
"Subordinated Debt" refers to the portion of a company's debt that is ranked below senior debt in terms of repayment priority, contributing to the capital structure but with greater risk.
Definition of "Subordinated Debt" as debt with conversion rights
This definition connects "Subordinated Debt" to convertible features.
"Subordinated Debt" means debt that may be converted into equity, with a lower priority in repayment than other debts in the event of liquidation.
Definition of "Subordinated Debt" as debt subject to investor risk
This definition applies "Subordinated Debt" to the risk faced by investors.
"Subordinated Debt" refers to a type of debt issued by an entity that poses higher risk to investors, as it is repaid only after senior debts are settled.
Definition of "Subordinated Debt" as a debt with flexible terms
This definition connects "Subordinated Debt" to flexible terms for repayment.
"Subordinated Debt" means debt that may offer more flexible terms to borrowers, such as longer repayment schedules or lower interest rates, while being lower in priority for repayment.
Definition of "Subordinated Debt" as a source of corporate financing
This definition ties "Subordinated Debt" to its role in corporate financing.
"Subordinated Debt" refers to a form of corporate financing where the lender receives a higher return in exchange for the lower repayment priority in case of financial distress.
Definition of "Subordinated Debt" as a form of risk capital
This definition connects "Subordinated Debt" to risk capital investment.
"Subordinated Debt" means a form of financing that provides capital to a business with the understanding that repayment may be delayed if the company faces financial difficulties.
Definition of "Subordinated Debt" as debt issued to mezzanine lenders
This definition applies "Subordinated Debt" to mezzanine lenders.
"Subordinated Debt" refers to debt issued to mezzanine lenders, typically used by companies in need of additional financing after securing senior debt.
Definition of "Subordinated Debt" as debt issued in restructuring
This definition ties "Subordinated Debt" to restructuring scenarios.
"Subordinated Debt" means debt that is issued during corporate restructuring, which ranks lower than senior obligations in terms of repayment.
Definition of "Subordinated Debt" as a form of investor loan
This definition connects "Subordinated Debt" to loans provided by investors.
"Subordinated Debt" refers to loans given by investors that are subordinated to other forms of debt and carry higher risk, thus offering higher potential returns.
Definition of "Subordinated Debt" as a high-interest loan
This definition ties "Subordinated Debt" to its high-interest nature.
"Subordinated Debt" means a loan that carries a higher interest rate due to its lower priority in the repayment hierarchy, providing a higher return to investors.
Definition of "Subordinated Debt" as debt with limited security
This definition connects "Subordinated Debt" to its limited security for creditors.
"Subordinated Debt" refers to a type of debt that is not backed by collateral and is repaid only after more senior secured debts are settled in case of liquidation.
Definition of "Subordinated Debt" as a bridge loan
This definition applies "Subordinated Debt" to a bridge loan.
"Subordinated Debt" refers to a type of debt used as a bridge loan, which is subordinated to senior financing and typically repaid after senior debt obligations are fulfilled.
Definition of "Subordinated Debt" as debt with higher risk profile
This definition ties "Subordinated Debt" to a higher-risk investment.
"Subordinated Debt" means a debt instrument that carries a higher risk for investors, as it is paid after senior debts are settled and may be subject to more defaults.
Definition of "Subordinated Debt" as a form of financing for distressed companies
This definition connects "Subordinated Debt" to distressed company financing.
"Subordinated Debt" refers to financing provided to companies in distress, typically ranking below senior debt but offering higher returns due to the increased risk.
Definition of "Subordinated Debt" as debt in a distressed sale
This definition applies "Subordinated Debt" to a distressed sale.
"Subordinated Debt" means debt incurred during a distressed sale, which is repaid after senior obligations are fulfilled and carries a higher interest rate due to its riskier nature.
Definition of "Subordinated Debt" as debt in a leveraged buyout
This definition ties "Subordinated Debt" to a leveraged buyout situation.
"Subordinated Debt" refers to debt issued during a leveraged buyout that is subordinated to senior debt and typically used to finance the acquisition of a company.
Definition of "Subordinated Debt" as debt with equity conversion rights
This definition connects "Subordinated Debt" to the potential for equity conversion.
"Subordinated Debt" means debt that may be converted into equity under certain conditions, ranking below senior debt in priority during liquidation.
Definition of "Subordinated Debt" as a source of capital for startups
This definition applies "Subordinated Debt" to startup financing.
"Subordinated Debt" refers to a form of financing used by startups, where investors lend capital with the understanding that it will be repaid after senior debts, if at all.
Definition of "Subordinated Debt" as a tool for risk management
This definition ties "Subordinated Debt" to its role in risk management for businesses.
"Subordinated Debt" means debt that businesses use to manage risks, as it allows them to raise capital with more flexible repayment terms, although with greater risk to creditors.
Definition of "Subordinated Debt" as a part of a structured finance deal
This definition connects "Subordinated Debt" to structured finance.
"Subordinated Debt" refers to the portion of a structured finance deal that is repaid after senior debt obligations, often used in securitization or debt structuring transactions.
Definition of "Subordinated Debt" as a private debt instrument
This definition ties "Subordinated Debt" to private debt markets.
"Subordinated Debt" means debt that is privately issued, often to institutional investors, and ranks below senior debt in the repayment order.
Definition of "Subordinated Debt" as debt with subordinated interest payments
This definition connects "Subordinated Debt" to the interest payment structure.
"Subordinated Debt" refers to debt where interest payments are subordinated, meaning they are paid only after the interest on senior debt is settled.
Definition of "Subordinated Debt" as debt to junior lenders
This definition applies "Subordinated Debt" to junior lenders.
"Subordinated Debt" means debt issued to junior lenders, who agree to accept repayment only after senior lenders are paid in full.
Definition of "Subordinated Debt" as debt with long repayment terms
This definition ties "Subordinated Debt" to long-term repayment schedules.
"Subordinated Debt" refers to debt that comes with long repayment terms, typically offering lower periodic payments but higher interest due to its riskier position.
Definition of "Subordinated Debt" as a strategic financing tool
This definition connects "Subordinated Debt" to strategic financial decisions.
"Subordinated Debt" means a financing tool used by companies to raise capital while maintaining flexibility, knowing the debt will be repaid after senior debts.
Definition of "Subordinated Debt" as a source of financing in restructuring
This definition applies "Subordinated Debt" to corporate restructuring.
"Subordinated Debt" refers to debt incurred during a corporate restructuring, with the understanding that it will be repaid only after senior debts are settled.
Definition of "Subordinated Debt" as debt in distressed asset purchases
This definition ties "Subordinated Debt" to distressed asset acquisitions.
"Subordinated Debt" means debt that is issued in connection with the purchase of distressed assets, with lower repayment priority in case of liquidation.
Definition of "Subordinated Debt" as debt used to capitalize on future growth
This definition connects "Subordinated Debt" to growth opportunities.
"Subordinated Debt" refers to debt that is used to capitalize on future growth potential, offering higher returns to investors in exchange for the higher risk associated with its lower priority in repayment.
Definition of "Subordinated Debt" as a debt issuance to enhance equity value
This definition applies "Subordinated Debt" to equity enhancement strategies.
"Subordinated Debt" refers to debt issued by a company as part of a strategy to enhance its equity value, often offering higher yields to attract investors willing to accept higher risk.
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