Pari-passu is a Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors, or obligations are equally managed without preference. An example of pari-passu occurs during bankruptcy proceedings: When the court reaches a verdict, the court regards … See more In finance, the term pari-passu can refer to loans, bonds, or classes of shares that have equal rights of payment or equal seniority. Pari-passu … See more Since an asset backs secured debts, they are often not fully equal to the other obligations held by the borrower. Since there is no asset supporting unsecured debts, there are … See more Parity bonds have equal rights to the coupon or nominal yield. In fixed-income investments, the coupon is the annual interest rate paid on a bond. Consider a $1,000 bond with a 7% coupon rate. The bond will pay $70 per … See more Pro rata is another Latin term that means "in proportion." Usually, this term is used in situations where two parties have an unequal stake in a business or enterprise. If Party A has an … See more WebPari-passu is a term that may be used to characterize specific provisions included inside a number of financial instruments, such as loans and bonds, among others. Often, these conditions are in place to guarantee that the financial product linked with them performs on an equivalent level with all other financial products of a similar sort.
What is Pari Passu, and Why Does it Matter to Investors? - Confluence
WebMay 21, 2024 · Pari – Passu is a Latin expression. Literally means “with an equal footing” or “ with an equal step.” It is sometimes translated as “ ranking equally.” Hence, Pari-passu charges mean charge holders have equivalent rights over the borrower assets on which pari-passu charge is created. WebJul 20, 2024 · It the investor and the sponsor receive the same preferred return at the same time, then the preferred return is called a Pari-Passu preferred return. With a true … stylish outdoor christmas lights
Pari Passu: Definition and Examples (2024) - ContractsCounsel
WebDefinition Pari-Passu pari passu - Pari-passu is a latin term that means "of equal step" or "without partiality". Pari-passu is often seen in venture capital term sheets, indicating … WebFeb 7, 2024 · Pari Passu is Latin for “on equal footing”. In the world of finance, it refers to situations where two or more classes of people or transactions are managed without preference. Assets, obligations, securities, investors, and creditors can all be managed with a pari passu structure. WebMar 20, 2024 · Pari passu definition: with equal speed or progress ; equably: often used to refer to the right of creditors to... Meaning, pronunciation, translations and examples stylish orthotic shoes for women