easy · Debt Capital Markets bond-instruments-structures

In a leveraged buyout (LBO) capital structure, where does the revolving credit facility usually sit in terms of seniority?

1. Behind the term loan B in the liquidation waterfall.
2. At the top of the capital stack as senior secured debt.
3. At the very bottom of the stack, just above common equity.
4. Between the senior unsecured bonds and the subordinated notes.

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