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What is a Second Lien?

April 26, 2017lien

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What is a Second Lien?

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A senior secured second lien works in tandem with an asset-based loan and provides a company with some liquidity when other capital sources may be less accessible. It holds the same rights and covenants as a traditional bank loan except that it is second in line in terms of repayment priority. Read the CapitalEyes article: “Completing The Capital Structure With A Second Lien Loan.

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Posted

A senior secured second lien works in tandem with an asset-based loan and provides a company with some liquidity when other capital sources may be less accessible. It holds the same rights and covenants as a traditional bank loan except that it is second in line in terms of repayment priority.