Priority Senior Secured Notes Clause Samples
The Priority Senior Secured Notes clause establishes that certain debt instruments, known as senior secured notes, have the highest repayment priority and are backed by specific collateral. In practice, this means that if the issuer defaults, holders of these notes are paid before other creditors and can claim the secured assets to recover their investment. This clause is crucial for providing security to investors and lowering their risk, thereby making the notes more attractive and potentially reducing borrowing costs for the issuer.
Priority Senior Secured Notes. The Borrower shall have delivered to the Administrative Agent an executed copy of the First-Priority Senior Secured Note Documents to be entered into on the Closing Date.
Priority Senior Secured Notes. The proceeds of the First Lien Notes issued on the Other Amendments Effective Date (the “2013 First Lien Notes”) shall have been used to (i) repay in full all Term Loans and (ii) purchase, redeem or discharge all of the Second-Priority Senior Secured Floating Rate Notes Due 2014 issued under the Indenture, dated as of November 3, 2006, among Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC, as co-issuers, the guarantors named therein and Wilmington Trust Company, as trustee, in each case outstanding on the Other Amendments Effective Date. The Required Lenders hereby waive the notice requirements of Section 2.11(d) of the Initial Amended Credit Agreement with respect to repayments pursuant to this Section 3.2(a).