Glossary Category: S

A debt facility raised at a Holdco is structurally subordinated to one raised at an Opco, given the Holdco sits “higher up” in the corporate

A Financial Covenant which is only tested in case a certain condition (Springing Test) is met.A typical construct in Revolving Credit Facilities which accompany a

Debt which has priority over junior debt in an insolvency or enforcement scenario.Examples of Senior Debt: Senior Secured Debt, 1st Lien Debt, Super Senior Debt

Buying and selling syndicated debt instruments (bonds or loans) in the secondary market, after the initial (or primary) syndication

Sale of a portfolio company from one private equity firm to another See also: Primary Buyout

Subordinated secured debt ranking below first lien but above unsecured creditors.