RCF vs SSRCF: lev fin

What are the key considerations when thinking about if a high yield bond or term loan b issuance should be accompanied by a standard RCF or a super senior RCF?

Haven't seen much SSRCFs asides from in UT mid cap LBOs but understand that corporates may use SSRCFs too, so just trying to understand how companies think about RCFs when issuing HYBs or TLBs.

5 Comments
 

I think Super Senior RCF tends to be in more distressed or distressed-adjacent (exit from bankruptcy financing) where there's a reason for the revolver to be senior to everyone else. RCF typically are part of the "First Lien Credit Facility" with the term loan.

 

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