senior secured debt


Debt instruments that get priority repayments if a company defaults. For example, if Company A defaults on their mortgage payments and has only $100,000 with which to pay off their collective $200,000 worth of debts, the parties owning senior secured debts would be paid off before other debtors would be considered. One common senior secured debt instrument is mortgage loans.

Use senior secured debt in a sentence

You may may want to try and use a senior secured debt if that will be the best way to get out of your troubles.

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The lowest risk to the lender is with senior secured debt and therefore this is likely to carry a lower interest rate than riskier unsecured or junior debt.

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After our competitor went bankrupt, my boss revealed that we had purchased much of their distressed debt and now controlled the senior secured debt and would be first in line to be paid.

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senior refunding senior security