Second Lien Loan | Practical Law

Second Lien Loan | Practical Law

Second Lien Loan

Second Lien Loan

Practical Law Glossary Item 5-382-3790 (Approx. 2 pages)

Glossary

Second Lien Loan

A loan secured on a second ranking basis by (more or less) the same collateral, which secures the first lien loan. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the first lien lenders will be paid in full from the proceeds of collateral before the second lien lenders receive any proceeds.