The following Banking & Finance practice note Produced in partnership with Carlo de Vito Piscicelli of Cleary Gottlieb Steen & Hamilton provides comprehensive and up to date legal information covering:
This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European lending market for institutional investors.
This Practice Note explores the structure of a typical TLB facility and how it differs from that of traditional leveraged loans in Europe before looking at its key features.
This Practice Note assumes some knowledge of leveraged finance. For introductory information, see: Acquisition finance—introductory guide. For an explanation of common terms, see Practice Note: Glossary of acquisition finance terms and jargon.
The term 'Term Loan B' or 'TLB' is used in the lending market to refer to a tranche of senior secured credit facilities made available to a borrower that is designed to be syndicated in the institutional loan market. These are typically floating-rate term facilities with an actual or implied non-investment grade rating, a maturity of five to seven years and a nominal (1% per year) or no amortisation, with the remaining principal due in a bullet repayment at maturity.
The interest, maturity and amortisation profile of TLB facilities are designed to suit the needs of institutional investors, who seek a higher yield and longer term investment than traditional bank lenders.
TLB facilities are often accompanied by a revolving
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This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having an intercreditor agreement and when an intercreditor agreement would be used instead of a deed of priority or subordination deed•provides links to
When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to ensure that relevant creditors quickly enter a standstill agreement to gain some breathing space to consider a restructuring
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
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