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Corporate Finance & M&A

Term Loan B

Also called: TLB, institutional term loan, leveraged loan

A Term Loan B is the institutional tranche of leveraged loan financing — floating rate, minimal amortisation, bullet repayment, sold to funds and CLOs rather than held by banks. It's the workhorse of LBO financing. Because it floats over SOFR, a buyout structured when rates were near zero can see its interest bill double without anything changing at the company.

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