easy · Debt Capital Markets bond-instruments-structures

What is the relationship between the 'bridge' and the 'permanent' Term Loan B (TLB) in many LBO structures?

1. The bridge is intended to fund the senior leadership team, while the Term Loan B is reserved for junior staff.
2. The bridge and the Term Loan B are functionally the same instrument, simply marketed to lenders under two distinct labels.
3. The bridge is a temporary commitment that is often replaced or 'taken out' by the permanent TLB shortly after closing.
4. The bridge is left entirely unsecured, whereas the permanent Term Loan B is always backed by an explicit sovereign guarantee.

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