Term Loan B
(TLb)
Noun
AE
The second-lien term loan facility (tranche) of a leveraged credit agreement with bullet repayment usually with a longer maturity than the Term Loan A (TLa) (e.g., 6-7 years) and a considerably higher margin than the senior debt or any revolving credit under the same loan agreement, generally sold to institutional investors.
Synonym(s):
- institutional Loan.
Comment:
They frequently have a small repayment schedule, usually about 1% of the principal amount of the loan per year, payable quarterly during the term of the loan, with the remainder due on the maturity date.