Structuring Term Loan B Transactions: Combining High Yield Financing With Conventional Bank Loans
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide finance counsel with an understanding of Term Loan B (TLB) transactions and how they can be structured to complement conventional bank loans while providing borrowers with access to non-bank financing on less restrictive terms.
Outline
- General characteristics of Term Loan B—term, amortization, balloon occurring after payoff of Term Loan A
- Term Loan B covenants vs. Term Loan A covenants
- Prepayment issues: Call protection
- Use of TLBs in escrow arrangements
Benefits
The panel will review these and other key issues:
- Standard structure and terms of TLBs including incremental debt and call protection
- What are the “covenant-lite” provisions typically found in TLB documents, and how do they vary from conventional TLA covenants?
- Revolving facilities and TLBs including springing covenants
- Waterfall and subordination structuring with TLBs including TLAs, Unitranche and 1st and 2nd Lien structures
- How might a TLB be employed in escrow in an acquisition financing?
Faculty
Jeff Norton
Partner
Dechert
Mr. Norton, a member of the firm's global finance practice, focuses on corporate finance matters, with particular... | Read More
Mr. Norton, a member of the firm's global finance practice, focuses on corporate finance matters, with particular emphasis on acquisition finance. His experience includes advising on syndicated senior and junior leveraged debt, bridge loan financings and high yield issuances in the U.S., Europe, Asia and Latin America, including numerous U.S. and European TLB and Yankee loan transactions. He advises corporates, financial institutions, financial sponsors and funds on a variety of finance matters such as leveraged finance, general finance, liability management transactions as well as restructurings.
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Scott M. Zimmerman
Partner
Dechert
Mr. Zimmerman, head of the firm’s leveraged finance practice, has extensive experience representing public and... | Read More
Mr. Zimmerman, head of the firm’s leveraged finance practice, has extensive experience representing public and private companies, private equity firms, and commercial and institutional providers of senior debt and mezzanine capital on a broad range of financing transactions, including public and private equity and debt offerings, secured lending, recapitalizations, and restructurings. His lender clients include business development companies, mezzanine debt funds and financial institutions. In addition, he represents leading private equity firms and their portfolio companies in acquisition financings and recapitalization transactions. He also has represents numerous strategics across a variety of industry sectors in domestic and cross-border transactions.
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Bridget K. Marsh
Executive Vice President - Deputy General Counsel
Loan Syndications & Trading Association
Ms. Marsh is Deputy General Counsel for the LSTA. She heads the LSTA’s Primary Market Committee and Trade... | Read More
Ms. Marsh is Deputy General Counsel for the LSTA. She heads the LSTA’s Primary Market Committee and Trade Practices and Forms Committee and leads the legal projects for the development and standardization of the LSTA’s documentation. Ms. Marsh is responsible for responding to and addressing secondary loan market trading disruptions and ensuring that the LSTA's primary market and trading documentation reflects current market practices. She regularly speaks on the loan market at American Bar Association events, and is a Regent of the American College of Commercial Finance Lawyers and a Fellow of the American Bar Foundation.
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