easy · Debt Capital Markets
What is the relationship between the 'bridge' and the 'permanent' Term Loan B (TLB) in many LBO structures?
- The bridge is for the senior management, while the TLB is for the junior employees.
- The bridge and the TLB are the exact same instrument with different names.
- The bridge is a temporary commitment that is often replaced or 'taken out' by the permanent TLB shortly after closing.
- The bridge is unsecured, while the TLB is always backed by government guarantees.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets practice
- In the context of Debt Capital Markets, what is a leverage-based margin ratchet?
- Which officer of a borrower is typically responsible for signing the compliance certificat
- Why is the Administrative Agent's role important for the margin ratchet?
- If a company has a leverage-based pricing grid and SOFR rises significantly while leverage
- What is meant by the 'bond floor' in the context of yield analysis?
- For a bond trading at a discount (below par), which yield measure is typically the same as
- What is a 'call schedule' for a corporate bond?
- If a bond's Yield to Worst is equal to its Yield to Maturity, what can we likely conclude