Senior Convertible Note

  

Categories: Bonds, Credit

Senior: the most senior in a likely line of flavors of debt. It's followed by Junior Debt, maybe Subordinated Junior Debt, then just Debentures. Something like that.

But that Senior Note is convertible. Not into Catholicism. (We're out of Spain, 17th century.) Rather, it's likely convertible into common stock at some ratio. Like, one bond unit (par value $1,000) converts into 40 shares, so if the stock trades meaningfully above $25 a share, you'd want to convert it, and maybe just sell it and take your profits 'n' run.

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Finance: What are Junior and Senior Debt...7 Views

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Finance a la shmoop what are senior and junior debt? or like what's the

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difference between them well what are they they're debt in a bankruptcy senior

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debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]

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jungle remember the debt stack? vendors to the

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company collect first then employees then the IRS of course because while

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they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]

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then come senior bonds then come junior then come unsecured bonds also known as

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debentures then subordinated debenture like debentures below debentures and

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there are all kinds of granular things in the bonds above we're very sorry if

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one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]

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the stack then there's preferred stock which collects after the most

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subordinated debentures collect generally and then finally there's

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common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]

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