The extra yield a borrower pays over a risk-free or base rate to compensate lenders for credit risk — the price of the risk, not the underlying rate.
Pre-agreed capacity in a credit agreement to raise additional debt later on the same terms — the accordion that lets a borrower add leverage without a new deal.
Debt holding a first-priority security interest in collateral — paid first from those assets, the senior-most secured claim in the capital structure.
The benchmark interest rate that replaced USD LIBOR — the <em>floating</em> base rate most leveraged loans now price over.
A covenant that forces a borrower to use a share of leftover free cash to <em>prepay</em> debt — automatic deleveraging.
Bonds that sit at the <em>top</em> of the capital structure — secured by collateral and first in line to be repaid.