easy · Private Credit & Debt loan-structures-instruments
A Delayed-Draw Term Loan (DDTL) is typically 'fungible' with the initial Term Loan once it is drawn.
What does 'fungible' mean in this context?
- The DDTL has a floating rate while the Term Loan is fixed
- The drawn DDTL and the initial Term Loan are treated as a single tranche with identical terms
- The DDTL can be used for any purpose, including dividends
- The DDTL must be repaid before the initial Term Loan
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