What is the difference between pro-rata and institutional?
Pro rata loans consist of revolving credits and amortizing term loans. The are traditionally syndicated to finance companies and banks. Institutional debt consists of term loans structured specifically for institutional investors, including CLOs, although some banks buy institutional term loans. These tranches include first- and second-lien loans, as well as prefunded letters of credit. Traditionally, institutional tranches were referred to as TLBs because they were bullet payments, and lined up (were longer-maturity) behind TLAs.
