Subordinated Debt is debt that ranks below senior debt in priority of repayment, meaning it is repaid after senior lenders in a liquidation or default, and it often carries higher interest to compensate for higher risk. In acquisition financing and mezzanine structures, Subordinated Debt can provide additional leverage capacity, and Subordinated Debt terms are typically governed by intercreditor agreements and subordination provisions.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
