TLA vs. TLB Maturity and Leverage
Could someone explain to me why TLAs often have a maturity of 6 years whereas TLBs are at 8? TLBs are often perceived as riskier which is reflected in the higher margins (due to the bullet repayment) which should result in a lower tenure, no?
Another question is how far you can leverage with a loan vs. high yield bond. Let's assume a company is acquired for 9.0x LTM EBITDA. Is it fair to assume that 3.0x TLB and 2.0x SUN (Senior Unsecured Notes) would be feasible or how high can you go with the senior loan?