Senior Debt

Senior debt sits at the top of a borrower’s capital structure. In the event of borrower default, senior debt lenders sit at the front of the queue for repayment. Senior debt can be secured or unsecured. Senior secured debt is secured by collateral that secured lenders can foreclose on and sell in order to be repaid. Senior unsecured debt is in the senior part of the capital structure but this is not backed by collateral.