Term Loan B

When standard advance rates don't achieve the availability you want, a Term Loan B may be an option for additional financing.

  • May be a specific dollar amount or a temporary increase in an advance rate
  • May be a separate facility or a modification to an existing facility
  • Cash flows are leveraged alongside asset values
  • May be supported by some level of business or enterprise value

Loan Structure

  • Structure provides for amortization over an agreed-upon schedule or paydown through additional pledge of collateral or asset sales
  • Cash flow sweep may be required
  • First lien on collateral
  • Leverage covenant likely required

Collateral Monitoring

  • Monitored on an asset-based borrowing base at least monthly