Question: what is the difference between term loan a and term loan b?
Answer: Bank debt, other than revolving credit facilities, generally takes two forms: Term Loan A – This layer of debt is typically amortized evenly over 5 to 7 years. Term Loan B – This layer of debt usually involves nominal amortization (repayment) over 5 to 8 years, with a large bullet payment in the last year.