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What is a Term A vs Term B loan?

Updated: 9/11/2023
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16y ago

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When the 'primary' lender decides to syndicate the loan, it always/(usually?) maintains a portion of the loan for its own account (the "A loan"), while selling participations in the remainder (the "B Loan"). The primary lender is the sole contractual lender, acting on behalf of both itself and the B loan participants. Normally there is a single loan agreement between the primary lender and the borrower for the full amount of the financing to be provided by the primary and the participating institutions. It encompasses both the A and B loans, although the tenors of the two loans may differ.

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Q: What is a Term A vs Term B loan?
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Related questions

What is a Term loan b?

Term loan B is a high yield loan. This is issued in the US market and it includes a mix of traditional bank lenders and institutional investors.


Long term loan vs short term loan?

With long term loans, borrowers can take a longer period of time to start paying of their loan. Whereas with short term loans, the borrowing time is usually no more than two weeks because the borrowers typically use short term loans to cover their extra expenses between paychecks - after borrowing the money they use their next paycheck to pay back the short term loan.


Term Loans?

form_title=Term Loans form_header=Finance your business with a term loan from the bank. What type of term loan are you interested in?= [] Intermediate Term Loan [] Long Term Loan How much do you intend to borrow with your next term loan?=_ How long to do you hope to take to pay the term loan back in full?=_


What is the term for a loan in which the interest rate does not change during the entire term of the loan?

a fixed rate loan.


What is the term for a person who has taken a loan?

The term used to refer to someone who has taken out a loan is, borrower.


Is a bridge loan a long term or a short term loan?

A bridge loan is a short term loan. The length of the loan can be a short as a few weeks to as long as three years, depending on certain factors. That said, most bridge loans are short in term and used in business to give a company time to secure long term, permanent financing.


What is TL?

TL stands for term loan. Term loan is a loan for a company. It's much like an auto loan for individual. It has predetermined terms, fees and rate.(palwest.com)


What is the typical term length of a title loan?

The typical term length of a title loan is 3 years.


Examples of long term financing?

home loan, educational loan, machinary loan


What does a loan term refer to?

A loan tern refers to the length of time a loan is valid, and how long the customer has to pay it back. The shorter term the loan is, typically the better the interest rate.


What is the average length of a short term loan?

The average length of a short term loan will depend on what type of loan is being taken out. In general a short term loan may be over a period of time of between one and five years.


Is it better to get a high interest short term loan or a low interest long term loan?

It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.