easy · Private Credit loan-structures-instruments
What is 'Pari Passu' status in the context of corporate debt?
- The debt is automatically cancelled once the company reaches its stated annual profit targets.
- The debt is only repayable in small fixed installments spread evenly over a period of twenty years.
- Two or more tranches of debt have equal priority and will be repaid proportionally in a liquidation.
- The lender holds a contractual right to travel alongside borrower management on scheduled business trips.
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