Intercreditor Agreement
An intercreditor agreement is a negotiated contract defining rights and remedies among creditors at different levels of a capital stack, especially between senior and mezzanine lenders. In mezzanine contexts, these agreements frequently include cure rights and standstill concepts that shape the timeline and mechanics of enforcement actions after default.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Structuring; loan documentation; default/workout
- Property types
- Commercial and multifamily with layered debt
In practice
The economic "value" of mezzanine debt can be determined as much by intercreditor terms (ability to cure, timing, transfer rights) as by coupon.
Related terms
Capital Stack and Structured Finance
- Capital Stack
- Common Equity
- Cure Right
- Mezzanine Debt
- Mezzanine Financing
- Preferred Equity
- Standstill Period
General information, not legal, tax or financial advice.