# Term Loan B

*Corporate Finance & M&A — Finicade finance glossary*

A Term Loan B is the institutional tranche of leveraged loan financing — floating rate, minimal amortisation, sold to funds and CLOs rather than banks.

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.

**Also known as:** TLB, institutional term loan, leveraged loan

**Related terms:** [Leveraged Buyout (LBO)](https://finicade.com/glossary/lbo), [Covenant-Lite](https://finicade.com/glossary/covenant-lite), [Floating Rate Note](https://finicade.com/glossary/floating-rate-note), [Senior vs Subordinated Debt](https://finicade.com/glossary/senior-vs-subordinated-debt), [Securitization](https://finicade.com/glossary/securitization)

Source: https://finicade.com/glossary/term-loan-b