What is series senior notes?

What is series senior notes?

Series A Senior Notes means the $175 million aggregate principal amount of unsecured senior notes of Pembina issued in June 2004 and due June 15, 2014 and which bear interest at a fixed rate of 5.99 percent per annum; Sample 1.

What is a senior note in finance?

A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation. Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds.

What is a series a note?

Series A Note means any Note, in substantially the form of Exhibit A-1 hereto, issued as part of a Series of Notes that is designated as “Series A”, which may be further differentiated by a numeric designation consisting of the year in which such Series is issued and consecutive numbers in chronological order of …

What does redeeming senior notes mean?

Existing Senior Notes Redemption means the redemption or repurchase in full of all of the Existing Senior Notes, and the satisfaction and discharge of the Existing Senior Notes Indenture, whether in one or a series of related transactions, including the payment of any premium, fee, cost or other expense in connection …

Who can buy senior convertible notes?

The major players in a convertible note offering include the issuer, its legal counsel and accountants, and one or more investment banks acting as underwriters or, in the case of a Rule 144A offering, “initial purchasers,” and their counsel. There will also be a trustee.

Are senior notes publicly traded?

Currently, there is no public market for the notes.

Why do companies issue senior notes?

A senior notes offering refers to the sale of senior notes by a company seeking to raise money from investors. Typically, the announcement of a senior notes offering is accompanied by a legal disclosure of the amount the company is seeking to raise, and what the company plans to do with the money.

Are senior notes first lien?

Senior debt is often secured by collateral on which the lender has put in place a first lien. Usually this covers all the assets of a corporation and is often used for revolving credit lines. It is the debt that has priority for repayment in a liquidation.

Why would a company offer senior notes?

Why Do Companies Offer Convertible Senior Notes? Convertible notes and convertible senior notes are a popular way for companies to borrow money with lower interest obligations than other kinds of debt. When note-holders redeem their notes for company shares, they reduce the company’s debt obligations.

Why would a company sell senior notes?

Why would a company issue senior notes?

A senior note is a type of bond that gives an investor a higher-priority claim compared to junior notes when a company files bankruptcy. Senior notes pay lower interest rates than junior notes but are repaid before other debts when a company defaults.

Are convertible senior notes bad?

Convertible notes are destructive when used carelessly. Having too many notes or poorly structured notes outstanding can put your company and later negotiations at risk by complicating your cap table.

Do senior notes amortize?

A senior term debt has an amortization schedule, where the borrowing company will have to pay the fixed installments of interest and principal. What makes senior term debt different than a regular debt is that it can include a bullet payment at the maturity date.

Are senior notes good for a company?

Are senior notes amortized?

What is a Series C?

In Series C rounds, investors inject capital into the meat of successful businesses, in an effort to receive more than double that amount back. Series C funding is focused on scaling the company, growing as quickly and as successfully as possible. One possible way to scale a company could be to acquire another company.

What is after Series C funding?

Series D Funding After your Series C, most companies find themselves in one of these situations: Your business is generating enough revenue to sustain its own growth without additional outside funding. You’ve had an exit (or plan to soon)

Why do companies sell senior notes?

Key Takeaways 1 Senior notes are bonds that must be repaid before most other debts in the event that the issuer declares bankruptcy. 2 That makes senior notes more secure than other bonds. 3 That greater level of safety means investors earn slightly lower interest rates.

What is the difference between senior notes and secured bonds?

Senior notes are a debt security, or bond, that takes precedence over other unsecured notes and must be repaid in the event of bankruptcy. A secured bond is secured by the issuer’s pledge of a specific asset, which is a form of collateral on the loan.

What is the difference between senior and junior notes?

Senior notes are typically unsecured debt; they aren’t secured by collateral. Because senior notes have less risk than junior bonds, they typically pay lower interest rates, but that doesn’t mean they’re risk-free.

What happens to senior notes when they become common stock?

Some senior notes are convertible into shares of the issuer’s common stock. In that case, investors may choose to hold senior notes until maturity or to convert the notes into a specified number of common stock shares.