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