easy · Private Credit loan-structures-instruments

A 'Delayed Draw Term Loan' (DDTL) is a facility that allows a borrower to:

1. Issue commercial paper directly backed by the lender's own senior corporate credit rating.
2. Access committed debt capital for a specific period after the initial closing, typically for acquisitions.
3. Automatically convert senior secured term debt into common equity once a covenant is breached, per its terms.
4. Postpone all scheduled cash interest payments on the facility until the loan reaches its final stated maturity.

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