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Pari Passu

Latin phrase indicating equal ranking in priority between two or more financial instruments.

Definition

Pari passu (Latin for "with equal step") means that two separate issues hold the same rank of priority in the capital structure: they are paid proportionally and at the same time, with neither senior to the other. It is common for a company with several preferred series to establish that they all rank pari passu with each other, but junior to debt and senior to common stock. Strategy's four preferreds (STRK, STRF, STRC, STRD) rank pari passu with one another.

Read this term in Spanish: versión en español →

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