ICA (Inter-Creditor Agreement)
Private Equity glossary · Advanced LBO Modeling Mechanics & Deal Structuring
Definition
Governs priority among multiple lender classes.
ICA (Inter-Creditor Agreement) in plain English
When a company borrows money from several different lenders at once, some lenders agreed to be paid back first and others agreed to wait in line behind them. An Inter-Creditor Agreement is the written contract that spells out that pecking order — who gets repaid first if the company runs into trouble. Think of it like siblings agreeing in advance who gets first pick of the leftovers, so there's no fight later. It matters because a lender's actual risk depends heavily on where they stand in that line.
Also called: Inter-Creditor Agreement
Practice ICA (Inter-Creditor Agreement)
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