Some long-term debt has higher priority than other debt over claims in the event of bankruptcy. Such debt is called senior debt, while debt with lower priority is called subordinated debt.
Debt generally has a number of restrictions (called covenants) that provide protection for both lenders and borrowers. These covenants appear in the indenture (debt agreement) and may include:
Interest rate and amount of the issued debt
Provisions for the repayment of debt
Restrictions on the amount and type of additional debt that can be issued
Dividend restrictions
Minimum level of operating performance that must be met over a certain period in order to meet debt covenants