A term loan is simply an installment loan, such as a loan one would use to buy a car. The borrower may draw on the loan during a short commitment period and repay it based on either a scheduled series of repayments or a one-time lump-sum payment at maturity (bullet payment). There are two principal types of term loans: an amortizing term loan and an institutional term loan.
Syndicated loans facilities (Credit Facilities) are basically financial assistance programs that are designed to help financial institutions and other institutional investors to draw notional amount as per the requirement.
There are four main types of syndicated loan facilities: a revolving credit; a term loan; an LOC; and an acquisition or equipment line (a delayed-draw term loan).
An institutional term loan (B-term, C-term or D-term loan) is a term-loan facility with a portion carved out for nonbank, institutional investors. These loans became more common as the institutional loan investor base grew in the U.S. and Europe . These loans are priced higher than amortizing term loans because they have longer maturities and bullet repayment schedules. This institutional category also includes loans and loans.
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