Below mentioned are some of the major differences between them:
The interest rate is higher in high-yield debt compared to bank debt.
Bank debt interest rates are not fixed like that of high-field debt, they tend to change based on the Fed interest rate and LIBOR.
Bank debt has maintenance covenants, whereas high-yield debt has incurrence covenants. The primary distinction between the two is that incurrence covenants forbid you from taking certain actions, whereas maintenance covenants compel you to maintain a minimum level of financial performance (for instance, the Debt/EBITDA ratio must always be below 5x).
When it comes to bank debt, the principal must often be amortized over time; but, with high-yield debt, the entire principal is payable at maturity (bullet maturity).