medium · Private Credit & Debt loan-structures-instruments
A 'Delayed Draw Term Loan' (DDTL) is a facility that allows a borrower to:
- Issue commercial paper backed by the lender's credit rating.
- Access committed debt capital for a specific period after the initial closing, typically for acquisitions.
- Automatically convert senior debt into common equity if a covenant is breached.
- Postpone interest payments until the final maturity of the loan.
Sign up free to see the explanation and track your rank →
More Private Credit & Debt loan-structures-instruments practice
- What is the blended interest rate paid by the borrower?
- What is the blended interest rate margin the borrower pays on the total facility?
- A private credit fund is evaluating a 'Unitranche' loan for… — What is the borrower's expe
- A fund manager is valuing a senior loan to a private mid-mar… — Under ASC 820, how is this
- Which group is the fulcrum?
- What is the indicative margin for the 'last-out' lender?
- What is the primary risk factor the lender evaluates?
- If the company fails and liquidates for $2M after two years, what was the primary risk rea