Term Loan B facilities


Produced in partnership with Carlo de Vito Piscicelli of Cleary Gottlieb Steen & Hamilton
Practice notes

Term Loan B facilities


Produced in partnership with Carlo de Vito Piscicelli of Cleary Gottlieb Steen & Hamilton

Practice notes
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This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated Loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European Lending market for institutional Investors.

This Practice Note explores the structure of a typical TLB facility and how it differs from that of traditional leveraged loans in Europe before looking at its key features.

This Practice Note assumes some knowledge of leveraged finance. For introductory information, see: Introductory guide to acquisition finance. For an explanation of common terms, see Practice Note: Glossary of acquisition finance terms and jargon.

What is a Term Loan B?

The term 'Term Loan B' or 'TLB' is used in the lending market to refer to a tranche of senior secured credit facilities made available to a borrower that is designed to be syndicated in the institutional loan market. These are typically floating-rate term facilities with an actual or implied non-investment grade rating, a maturity of

Carlo de Vito Piscicelli
Carlo de Vito Piscicelli

Cleary Gottlieb Steen & Hamilton

Carlo de Vito Piscicelli is a London and Milan based partner of Cleary Gottlieb. His practice focuses on leveraged finance and restructuring matters and he advises clients globally on a wide variety of loan facilities, high-yield notes and related derivatives transactions.

Carlo joined the firm in 2004, became counsel in 2010, and a partner in 2014. From 2004 to 2010, he was resident in the Milan and London offices, and from 2010 to 2012, he was resident in the New York office. Carlo previously worked for Simpson Thacher & Bartlett LLP in New York and Studio Legale Pedersoli in Milan.

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Jurisdiction(s):
United Kingdom
Key definition:
Loans definition
What does Loans mean?

occupational pension scheme resources may not at any time be invested in an employer-related loan. In accordance with section 40 of the Pensions Act 1995, employer-related loans are: loans to the employer or any such person; shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer; or employer-related investments eg a guarantee or security for obligations of the employer. This does not apply in respect of small self-administered schemes (SSASs) and self-invested pension plans (SIPPs).

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