B term loans, or “TLBs”, are commonly referred to as “institutional term loans” due to the fact that they are sold to institutional investors. Term loan B’s are used to a greater extent than term loan A’s in LBO financings. Typical, term loan B’s are larger in size and has a longer term than term loan A’s. A reason for the longer term is that, bank lenders prefer to have their debt mature before term loan B’s. Term loan B’s are generally amortized at a nominal rate such as 1% per annum. The rest is repaid as a bullet at maturity. Common tenor for term loan B’s is up to seven years. As institutional investors prefer non-amortizing loans with longer maturities and higher coupons, TLBs are more suitable for them to invest in than term loan A’s.