Mechanics

Sequential pay

Also known as: sequential

status: draft

A principal payment structure where the most senior class pays down first, then the next class, and so on.

What to watch

Sequential pay protects seniors and delays principal return to junior or residual holders.

Referenced in 34 topics

ABF vs. traditional lending (when ABF makes sense, when it doesn't) foundations Administration agreement documentation Advanced waterfall mechanics mechanics Amendments and waivers lifecycle-events Basel III/IV capital treatment regulatory Cash flow modeling accounting-valuation Cash operations and waterfall execution operations-lifecycle Common mistakes and how to avoid them playbooks Credit analysis accounting-valuation Data validation and quality accounting-valuation Deal structures asset-classes Deal timeline matrix appendix Financing progression roadmap playbooks Healthcare receivables asset-classes NAIC filing and designation deep dive legal Navigating the deal process playbooks Performance triggers mechanics Portfolio monitoring for ABF funds operations-lifecycle Private placement / bespoke structures structures Questions to ask your legal team playbooks Red flags asset-classes Repackaging structures structures Sample waterfall appendix Structural tests (OC/IC) mechanics Structuring deals for investor appeal playbooks Tax classifications explained legal Term sheet anatomy documentation The waterfall mechanics Top capital provider mistakes playbooks Top deal process mistakes playbooks Trigger negotiation strategies mechanics Trigger remediation strategies mechanics Triggers, tests, and performance events mechanics Whole business securitization asset-classes