Finance Deals & Syndicated Lending · glossary
A promise by another company to pay what the borrower owes. In Sunrise two operating subsidiaries guarantee Atlas's debt, so the lenders can claim directly against the companies that hold the value. Each Guarantor must pay on demand. Clause 14.1 · Chapter 13
Explained in Chapter 13, Guarantees and Security: a Primer, of Finance Deals & Syndicated Lending.
Also explained in Security & Collateral.
A lender can strengthen a loan in two ways, which the market calls credit support. A guarantee makes another company liable for the same debt, so the lender has more companies to claim against. Security gives the lender a right over particular assets, so it is paid first from them if the borrower fails. Sunrise has guarantees from Atlas's two operating subsidiaries, and no security at all.Read Chapter 13, Guarantees and Security: a Primer →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Finance Deals & Syndicated Lending and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Finance Deals & Syndicated Lending → · All terms A–Z →