Lehman Brothers Financial SA (LEHNQ)

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Did you mean: on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and • senior to Lehman Brothers Holdings common stock.

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This clause from a Lehman Brothers Holdings legal document outlines the relative priority of a security in relation to the company's capital structure. The security in question is placed on the same level (parity) as the most senior preferred or preference stock the company has issued or might issue in the future. It also has the same priority as any guarantees Lehman Brothers Holdings has made for preferred securities of its affiliates. Additionally, this security is senior (or higher in priority) to the company's common stock.
Here's a breakdown:
Parity with Senior Preferred/Preference Stock:
👉️This means the security being discussed has the same claim on the company's assets and earnings as the most senior preferred or preference stock.
Parity with Guarantees:
👉️If Lehman Brothers Holdings has guaranteed the repayment or dividends of preferred securities issued by its affiliates, this security also has the same priority as those guarantees.
Senior to Common Stock:
The security has a higher priority claim on assets and earnings than the company's common stock. This means the holders of this security would be paid before common shareholders in the event of liquidation or dividend distributions.
In essence, this clause establishes a clear order of priority in the company's capital structure, ensuring that this particular security and the senior preferred/preference stock are treated equally, and that they have a higher claim on assets and earnings than the common stock.