Examples of First Lien Loans in a sentence
Prior to the Petition Date, on October 1, 2020, the Debtors commenced the solicitation of votes on the Prepackaged Plan from the holders of First Lien Loans and Second Lien Loans on the basis of the Disclosure Statement for Joint Prepackaged Chapter 11 Plan of UTEX Industries, Inc.
For the avoidance of doubt, DIP Loans shall constitute First Lien Loans.
The First Lien Credit Agreement includes a Prepayment Premium (as defined in the Final DIP Order) that permits Mission Coal to repay the First Lien Loans before the scheduled maturity date.
First Lien Convertible Preferred Equity with an initial liquidation preference equal to the aggregate principal amount of such Holder’s First Lien Loans less the aggregate original principal amount of Exit Facility Term Loans received by such Holder.
The risk of loss is therefore greater for lenders of Second Lien Loans (and other subordinated loans) in contrast to First Lien Loans.