Phrases with «subordinated debt»

Subordinated debt refers to a type of loan or debt that is considered as lower priority or rank when it comes to repayment in case of bankruptcy or default. It means that if a company or individual is unable to pay back all their debts, the subordinated debt will be paid after the other debt obligations are settled. So, it is a riskier investment compared to other types of debt, but it may offer higher returns to compensate for the increased risk. Full definition

subordinated debt

Sentences with «subordinated debt»

Berkshire received a $ 2.1 billion minority equity interest in the Wrigley subsidiary and took on $ 4.4 billion of subordinated debt as part of the deal. (sandiegouniontribune.com)
To start, he needed both people and funds — futuristic home doodads don't invent themselves — so he secured $ 12.5 million in subordinated debt financing from the Business Development Bank of Canada and Quebec's Fonds de solidarité FTQ, with flexible five - year payment terms (the latter a reward for years of solid financial management). (canadianbusiness.com)
With a clear idea of what to expect from subordinated debt as a financing option, what type of lender would an interested business owner look to? (entrepreneur.com)
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Phrases with «subordinated debt»

Sentences with «subordinated debt»

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