Tranche definition: Copy, customize, and use instantly
Introduction
The term "Tranche" refers to a portion, slice, or segment of a larger financial arrangement, such as a loan, security, or investment. It is commonly used in structured finance, where different tranches may have distinct characteristics, such as varying risk levels, interest rates, or maturity dates.
Below are various examples of how "Tranche" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Tranche" in a securitization transaction
This definition ties "Tranche" to asset-backed securities.
"Tranche" means any designated portion of a structured financial instrument, such as a mortgage-backed security, that has distinct credit, interest rate, or maturity characteristics.
Definition of "Tranche" in a syndicated loan agreement
This definition applies "Tranche" to syndicated lending.
"Tranche" refers to a portion of the total loan facility that is disbursed under specific conditions, including interest rate adjustments and repayment schedules.
Definition of "Tranche" in a private equity investment
This definition links "Tranche" to staged investments.
"Tranche" means a pre-determined portion of an investment that is disbursed upon the achievement of agreed milestones.
Definition of "Tranche" in a convertible bond issuance
This definition connects "Tranche" to structured debt instruments.
"Tranche" refers to a segment of a convertible bond issuance with defined conversion terms and interest rates, offering different risk profiles to investors.
Definition of "Tranche" in a municipal bond offering
This definition applies "Tranche" to public finance.
"Tranche" means a series of municipal bonds issued under the same program but with different maturity dates, interest rates, or investor eligibility criteria.
Definition of "Tranche" in a venture capital funding agreement
This definition ties "Tranche" to startup financing.
"Tranche" refers to a portion of a venture capital investment that is released based on the company’s financial performance or operational milestones.
Definition of "Tranche" in a mortgage-backed security (MBS)
This definition links "Tranche" to MBS structures.
"Tranche" means a specific class of mortgage-backed securities within a securitization, distinguished by repayment priority and risk exposure.
Definition of "Tranche" in an infrastructure financing agreement
This definition applies "Tranche" to large-scale project funding.
"Tranche" refers to a segment of infrastructure financing that is disbursed based on project completion stages and compliance with financial covenants.
Definition of "Tranche" in a distressed debt restructuring
This definition ties "Tranche" to restructuring agreements.
"Tranche" means a portion of restructured debt that has unique repayment terms, interest rates, or security rankings.
Definition of "Tranche" in a subordinated debt issuance
This definition connects "Tranche" to tiered debt structures.
"Tranche" refers to a subordinated portion of a debt issuance, ranking lower in repayment priority compared to senior debt.
Definition of "Tranche" in a lease securitization deal
This definition applies "Tranche" to asset-backed leasing.
"Tranche" means a portion of lease-backed securities that has a distinct credit rating and cash flow distribution priority.
Definition of "Tranche" in an insurance-linked security (ILS)
This definition ties "Tranche" to catastrophe bonds and risk transfer.
"Tranche" refers to a segment of an insurance-linked security that has unique risk exposure levels and return characteristics.
Definition of "Tranche" in a derivatives contract
This definition links "Tranche" to structured derivatives.
"Tranche" means a designated portion of a structured derivative instrument, differentiated by payout triggers and risk factors.
Definition of "Tranche" in a commercial real estate financing deal
This definition applies "Tranche" to real estate-backed loans.
"Tranche" refers to a segment of commercial real estate financing that has specific interest rate and amortization schedules.
Definition of "Tranche" in a debt issuance program
This definition ties "Tranche" to phased debt offerings.
"Tranche" means a portion of a multi-issuance debt program, released at different times based on market conditions and issuer needs.
Definition of "Tranche" in an employee stock option plan (ESOP)
This definition links "Tranche" to equity incentives.
"Tranche" refers to a portion of stock options granted to employees, subject to vesting conditions and performance milestones.
Definition of "Tranche" in a revolving credit facility
This definition applies "Tranche" to credit agreements.
"Tranche" means a distinct portion of a revolving credit facility with unique borrowing limits, interest rates, or usage restrictions.
Definition of "Tranche" in a capital markets transaction
This definition ties "Tranche" to structured capital offerings.
"Tranche" refers to a portion of a capital markets issuance that is allocated to specific investor groups with tailored risk profiles.
Definition of "Tranche" in a green bond issuance
This definition connects "Tranche" to environmental finance.
"Tranche" means a portion of a green bond program, earmarked for sustainable projects with predefined environmental criteria.
Definition of "Tranche" in a cross-border financing deal
This definition applies "Tranche" to international finance.
"Tranche" refers to a portion of cross-border financing issued in a specific currency, jurisdiction, or regulatory framework.
Definition of "Tranche" in an acquisition financing agreement
This definition ties "Tranche" to M&A funding.
"Tranche" means a segment of acquisition financing released based on transaction milestones or regulatory approvals.
Definition of "Tranche" in a credit default swap (CDS)
This definition links "Tranche" to credit derivatives.
"Tranche" refers to a portion of a credit default swap contract with varying exposure levels to default risk.
Definition of "Tranche" in a sovereign debt restructuring deal
This definition applies "Tranche" to government debt management.
"Tranche" means a portion of restructured sovereign debt with distinct repayment schedules and concessionary terms.
Definition of "Tranche" in a high-yield bond issuance
This definition ties "Tranche" to speculative-grade debt.
"Tranche" refers to a portion of a high-yield bond offering with differentiated interest rates and credit ratings.
Definition of "Tranche" in a hybrid financing deal
This definition connects "Tranche" to mixed-structure financing.
"Tranche" means a portion of a financing arrangement combining equity and debt components, structured to meet investor requirements.
Definition of "Tranche" in a structured investment vehicle (SIV)
This definition applies "Tranche" to asset-backed investments.
"Tranche" refers to a portion of a structured investment vehicle that has a specific risk-return profile based on underlying assets.
Definition of "Tranche" as related to structured finance
This definition ties "Tranche" to structured finance, where financial instruments are divided into segments.
"Tranche" means a specific portion of a structured financial product, each with its own risk profile, maturity date, and return characteristics.
Definition of "Tranche" as related to loan disbursement
This definition connects "Tranche" to loans, where funds are released in stages.
"Tranche" refers to an installment of a loan that is disbursed based on the completion of certain conditions, such as project milestones or financial covenants.
Definition of "Tranche" as related to investment offerings
This definition links "Tranche" to investments, where securities are issued in series.
"Tranche" means a segment of an investment issuance, typically with different yield rates, risk levels, or redemption priorities.
Definition of "Tranche" as related to bond structures
This definition applies "Tranche" to bonds, where different classes of debt exist.
"Tranche" refers to a subdivision of a bond offering, each with distinct maturity dates, interest rates, or credit ratings, allowing investors to choose based on risk appetite.
Definition of "Tranche" as related to equity financing
This definition ties "Tranche" to equity financing, where funding is distributed over time.
"Tranche" means a scheduled release of equity capital in a financing agreement, contingent on achieving specific business performance targets.
Definition of "Tranche" as related to mortgage-backed securities
This definition connects "Tranche" to mortgage-backed securities, where cash flows are distributed in layers.
"Tranche" refers to a class of mortgage-backed securities that determines the order in which investors receive principal and interest payments.
Definition of "Tranche" as related to risk allocation
This definition links "Tranche" to risk management, where exposures are categorized.
"Tranche" means a designated portion of a financial instrument structured to isolate risk exposure, typically classified as senior, mezzanine, or junior levels.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.