Term Loan (TLA / TLB)

A fixed-amount loan with a set repayment schedule. Term Loan A (TLA) is typically bank-held with faster amortisation; Term Loan B (TLB) is institutional-investor-held, common in LBO financing, with minimal amortisation and a bullet repayment at maturity.

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Why not just borrow more? Step leverage up and watch coverage fall, the rating decay and the spread widen until WACC bottoms out.

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Where Term Loan (TLA / TLB) comes up

How to Build an LBO Model: The Build Order That Survives a Modelling TestUnder a 90-minute clock, the build order is the difference between a returns number and a half-finished model.Read the guide — 13 min

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