easy · Debt Capital Markets bond-instruments-structures
Which of the following best describes the position of 'Second Lien' debt in a capital structure?
- It is unsecured debt that effectively ranks as ordinary subordinated obligations.
- It is secured debt that ranks behind First Lien debt regarding the same collateral.
- It is the most senior secured tranche, ranking ahead of all other outstanding loans.
- It is a hybrid instrument that automatically converts into common equity at a defined trigger.
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