Senior Debt
/ˈsiːnjər dɛt/
Definitions
- (n.) Debt that has priority over other unsecured or junior debt in case of a default or bankruptcy.
Senior debt holders are paid before junior creditors during the liquidation.
Related terms
See also
Commentary
Senior debt typically benefits from contractual or statutory priority, which affects risk and recovery rates for lenders.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.