medium · Debt Capital Markets bond-instruments-structures
A Second-Lien lender is often referred to as being 'Silent'.
In the context of an intercreditor agreement, what does this 'silence' typically mean?
- The Second-Lien lender cannot vote on any amendments to the credit agreement that do not affect the collateral.
- The Second-Lien lender agrees to waive its right to take enforcement actions against the collateral for a set period (standstill) while the First-Lien lender acts.
- The Second-Lien lender's interest payments are not disclosed in the company's public financial statements.
- The Second-Lien lender is prohibited from attending any meetings with the company's management or board.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets bond-instruments-structures practice
- If a company has a leverage-based pricing grid and SOFR rises significantly while leverage
- What is meant by the 'bond floor' in the context of yield analysis?
- What is a 'call schedule' for a corporate bond?
- Which of the following describes a 'step-up' coupon in a callable bond?
- What is a 'deferred call'?
- What does a 5-year bond described as 'NC2' signify regarding its call protection?
- A 'make-whole' call differs from a standard 'fixed-price' call because the redemption pric
- If a bond has a 'Par Call' feature starting 6 months before maturity, what does this mean?