Subordinated Indebtedness definition: Copy, customize, and use instantly
Introduction
The term "Subordinated Indebtedness" refers to a debt that ranks lower in priority for repayment compared to other debts in the event of liquidation or bankruptcy. It is essential for distinguishing the order of payments among creditors and clarifying the risk associated with different classes of debt.
Below are various examples of how "Subordinated Indebtedness" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Subordinated Indebtedness" as a financial debt
This definition ties "Subordinated Indebtedness" to financial debt that has a lower priority in case of liquidation.
"Subordinated Indebtedness" means any debt obligation that ranks below senior debt in terms of repayment priority, meaning the subordinated debt holders are paid after senior creditors in case of liquidation or bankruptcy.
Definition of "Subordinated Indebtedness" as a corporate financing arrangement
This definition connects "Subordinated Indebtedness" to the financing arrangements of corporations.
"Subordinated Indebtedness" refers to any debt incurred by a company that is explicitly subordinate to other debt, and such debt is repaid only after more senior debts are fully satisfied.
Definition of "Subordinated Indebtedness" as a bond issuance
This definition links "Subordinated Indebtedness" to bond issues with lower repayment priority.
"Subordinated Indebtedness" means bonds or other debt securities issued by the issuer that have a lower priority than senior bonds or senior debt obligations in the event of a liquidation.
Definition of "Subordinated Indebtedness" as a loan agreement
This definition applies "Subordinated Indebtedness" to a specific loan arrangement.
"Subordinated Indebtedness" refers to any loan or credit agreement in which the lender agrees that their claim to repayment will be junior to the claims of other creditors, including senior lenders.
Definition of "Subordinated Indebtedness" as a mezzanine financing
This definition connects "Subordinated Indebtedness" to mezzanine financing arrangements.
"Subordinated Indebtedness" means debt that is typically unsecured and ranks behind senior debt but ahead of equity in terms of repayment priority, often used in mezzanine financing arrangements.
Definition of "Subordinated Indebtedness" as an equity-linked debt
This definition ties "Subordinated Indebtedness" to debt that is linked to equity in certain situations.
"Subordinated Indebtedness" refers to debt that may convert into equity under specific conditions but is subordinated in priority to other debt obligations in terms of repayment.
Definition of "Subordinated Indebtedness" as a capital structure component
This definition links "Subordinated Indebtedness" to the capital structure of a company.
"Subordinated Indebtedness" refers to the portion of a company's debt that is placed below senior debt in the capital structure, with repayment being deferred until senior debt obligations are fully met.
Definition of "Subordinated Indebtedness" as a bankruptcy proceeding
This definition applies "Subordinated Indebtedness" to bankruptcy or liquidation proceedings.
"Subordinated Indebtedness" means any debt that, in the event of bankruptcy or liquidation, will only be repaid after all senior creditors have been fully satisfied.
Definition of "Subordinated Indebtedness" as a convertible bond
This definition ties "Subordinated Indebtedness" to convertible bonds with a lower repayment priority.
"Subordinated Indebtedness" refers to a convertible bond that allows the holder to convert it into equity, but ranks below senior debt obligations in terms of repayment priority.
Definition of "Subordinated Indebtedness" as a loan for acquisition financing
This definition links "Subordinated Indebtedness" to loans used in corporate acquisitions.
"Subordinated Indebtedness" means debt incurred for acquisition purposes that ranks junior to other debts in terms of repayment priority during a sale or liquidation of the company.
Definition of "Subordinated Indebtedness" as a trade credit
This definition connects "Subordinated Indebtedness" to trade credit arrangements.
"Subordinated Indebtedness" refers to obligations to suppliers or vendors that are subordinated to senior obligations under a trade agreement.
Definition of "Subordinated Indebtedness" as a subordinated loan agreement
This definition applies "Subordinated Indebtedness" to loan agreements that include subordination clauses.
"Subordinated Indebtedness" means any loan that is expressly stated to be subordinate to other loans in terms of repayment.
Definition of "Subordinated Indebtedness" as subordinated promissory notes
This definition ties "Subordinated Indebtedness" to promissory notes issued with subordinate repayment terms.
"Subordinated Indebtedness" refers to promissory notes that rank below other notes or obligations in terms of repayment.
Definition of "Subordinated Indebtedness" as junior bonds
This definition links "Subordinated Indebtedness" to bonds that rank junior to other debts.
"Subordinated Indebtedness" means bonds issued with repayment terms that are junior to senior bonds.
Definition of "Subordinated Indebtedness" as payment-in-kind notes
This definition applies "Subordinated Indebtedness" to payment-in-kind (PIK) notes.
"Subordinated Indebtedness" refers to PIK notes that are subordinated to other obligations, typically involving deferred interest payments.
Definition of "Subordinated Indebtedness" as distressed debt
This definition ties "Subordinated Indebtedness" to debt acquired in distressed situations.
"Subordinated Indebtedness" refers to debt instruments purchased at a discount during financial distress, with repayment subordinated to other obligations.
Definition of "Subordinated Indebtedness" as intercompany loans
This definition connects "Subordinated Indebtedness" to loans between affiliated entities.
"Subordinated Indebtedness" means loans made between related entities that are subordinated to external obligations.
Definition of "Subordinated Indebtedness" as unsecured debt
This definition links "Subordinated Indebtedness" to unsecured obligations.
"Subordinated Indebtedness" refers to debt that is not backed by collateral and ranks below secured obligations in repayment.
Definition of "Subordinated Indebtedness" as subordinated lease obligations
This definition applies "Subordinated Indebtedness" to lease obligations that are explicitly subordinated.
"Subordinated Indebtedness" refers to lease payments that are junior in priority to senior debt or other critical obligations.
Definition of "Subordinated Indebtedness" as bridge loans
This definition ties "Subordinated Indebtedness" to short-term bridge financing.
"Subordinated Indebtedness" means temporary loans that are subordinate to permanent financing solutions.
Definition of "Subordinated Indebtedness" as vendor financing
This definition connects "Subordinated Indebtedness" to vendor-provided financing arrangements.
"Subordinated Indebtedness" refers to vendor financing agreements that rank below other secured or senior obligations.
Definition of "Subordinated Indebtedness" as private equity debt
This definition links "Subordinated Indebtedness" to private equity-backed debt arrangements.
"Subordinated Indebtedness" means obligations backed by private equity that are subordinated to traditional senior debt.
Definition of "Subordinated Indebtedness" as subordinated guarantees
This definition applies "Subordinated Indebtedness" to guarantees that are subordinated in priority.
"Subordinated Indebtedness" refers to guarantees made by a guarantor that are subordinate to primary obligations.
Definition of "Subordinated Indebtedness" as subordinated revolving credit
This definition ties "Subordinated Indebtedness" to revolving credit arrangements with subordinated repayment terms.
"Subordinated Indebtedness" refers to revolving credit facilities that rank junior to other secured credit facilities.
Definition of "Subordinated Indebtedness" as deferred payment obligations
This definition connects "Subordinated Indebtedness" to obligations involving deferred payments.
"Subordinated Indebtedness" means obligations with deferred repayment terms that are subordinated to senior debts.
Definition of "Subordinated Indebtedness" as preferred equity-linked debt
This definition ties "Subordinated Indebtedness" to debt linked with preferred equity instruments.
"Subordinated Indebtedness" refers to debt securities that are convertible into preferred equity, ranking below senior debt.
Definition of "Subordinated Indebtedness" as hybrid securities
This definition links "Subordinated Indebtedness" to hybrid financial instruments.
"Subordinated Indebtedness" refers to securities with debt and equity features that rank below senior debt obligations.
Definition of "Subordinated Indebtedness" as shareholder loans
This definition applies "Subordinated Indebtedness" to loans from shareholders to the company.
"Subordinated Indebtedness" refers to shareholder loans that are expressly subordinated to other financial obligations of the company.
Definition of "Subordinated Indebtedness" as recapitalization debt
This definition ties "Subordinated Indebtedness" to recapitalization efforts.
"Subordinated Indebtedness" means debt raised during recapitalization that is subordinated to existing senior debt.
Definition of "Subordinated Indebtedness" as trade receivable financing
This definition connects "Subordinated Indebtedness" to trade receivable-backed financing.
"Subordinated Indebtedness" refers to financing secured by trade receivables that ranks below other secured obligations.
Definition of "Subordinated Indebtedness" as subordinated preferred bonds
This definition links "Subordinated Indebtedness" to preferred bonds with subordinated repayment terms.
"Subordinated Indebtedness" means preferred bonds that rank junior to senior bonds in repayment priority.
Definition of "Subordinated Indebtedness" as second-lien loans
This definition applies "Subordinated Indebtedness" to second-lien loan agreements.
"Subordinated Indebtedness" refers to second-lien loans that are subordinate to first-lien obligations.
Definition of "Subordinated Indebtedness" as subordinated securitization debt
This definition ties "Subordinated Indebtedness" to securitization structures.
"Subordinated Indebtedness" refers to debt issued in a securitization that is subordinate to senior tranches.
Definition of "Subordinated Indebtedness" as non-recourse subordinated debt
This definition connects "Subordinated Indebtedness" to non-recourse financing.
"Subordinated Indebtedness" means debt where repayment is limited to specific collateral and ranks junior to other obligations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.