A term loan, called “leveraged loan” when non-investment grade, is a loan with a specified maturity that requires amortization according to a defined schedule. Like a revolver, a traditional term loan for LBO financing is structured as a first lien debt obligation and requires the borrower to maintain a certain credit profile through compliance with financial maintenance covenants contained in the credit agreement. Unlike the revolver a term loan must be fully funded on the date of closing and once principal is repaid, it cannot be re-borrowed. Term loans are classified by an identifying letter such as A, B or C etc. in accordance with their lender base, amortization schedule and term.