Lending specifically to private-equity-owned companies to fund buyouts and their growth — a distinct, relationship-driven corner of leveraged finance.
Debt secured by a second-priority claim on the same collateral as the first lien — paid from that collateral only after the first-lien lenders are satisfied.
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.
A covenant that forces a borrower to use a share of leftover free cash to <em>prepay</em> debt — automatic deleveraging.