vendor loan notes

vendor loan notes
In a private equity transaction, loan notes representing that element of the price to be paid for the target which a vendor agrees to defer and which is subordinated to the senior debt. Although similar in their terms to equity investor loans, they are usually priced to give a lower return though they are often redeemable prior to the equity investor loan.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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