easy · 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 credit line used solely for issuing letters of credit to suppliers.
3. A short-term loan that must be repaid within 360 days.
4. A subordinated debt instrument that ranks below high-yield bonds in priority.

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