first-lien

Meanings

1. 1adjectivebefore a nounfinancebusinessspecialist

   Having the first legal claim on a borrower's assets if a loan is not repaid.

   Grammar: Comes before a noun: first-lien debt, first-lien bond, first-lien lender.

   Patterns

   • first-lien debt
   • first-lien loan
   • first-lien lender

   The company issued first-lien bonds to raise money for the takeover.

   First-lien lenders get paid before anyone else if the company goes bankrupt.

   The bank offered a first-lien mortgage with a lower interest rate.

2. 2nouncountablefinancelegalspecialist

   A legal right to be paid first from a borrower's assets.

   Grammar: Countable: a first lien, two first liens. Often used in the phrase 'have a first lien on something'.

   Patterns

   • have a first lien on something
   • hold a first lien

   The creditor held a first lien on the factory equipment.

   A first lien gives the lender priority over other creditors.

Common combinations

first-lien debt

The company's first-lien debt is secured by its buildings.

first-lien bond

Investors bought first-lien bonds because they are relatively safe.

first-lien lender

The first-lien lender must be repaid before junior creditors.

first-lien mortgage

They took out a first-lien mortgage to buy the house.

Synonyms and how they differ

senior

Used in finance to mean having priority for repayment; 'senior debt' is similar but can include other types of priority, not just a lien.

secured

Means backed by assets, but does not necessarily mean first in line; a secured loan could be second-lien.

Opposites

Word family

lien noun

A legal right to keep or sell someone's property until a debt is paid.

first-lien adjective

Having the first claim on assets.

Commonly confused: first-lien or first line?

Practice

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