medium · Debt Capital Markets bond-instruments-structures

Which of the following best describes the 'Term Loan B' (TLB) in a leveraged finance stack?

1. A senior secured, floating-rate loan that is fully funded at close and typically has a bullet repayment.
2. An unsecured working-capital line used solely for issuing letters of credit to a borrower's suppliers.
3. A short-term bridge loan that must be fully repaid within 360 days of the drawdown date.
4. A deeply subordinated debt instrument that ranks below unsecured high-yield bonds in liquidation priority of payment.

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