Instrument by instrument through the capital structure. Understand each layer's mechanics, risk profile, and role in the financing hierarchy.
Core Foundations introduced the capital stack as a concept. This module goes deeper—dedicating a full lesson to each major instrument you'll encounter in a leveraged capital structure. From the revolver at the top to subordinated debt at the bottom, each layer has distinct mechanics, investor bases, and risk-return characteristics.
Understanding these instruments individually is essential before you can analyse how they interact in a complete financing. By the end of this module, you'll be able to read a sources and uses table and know exactly what each line means.
The liquidity backbone of the capital structure. Learn how revolvers work, why they sit at the top of the priority waterfall, and how commitment fees, borrowing bases, and springing covenants shape their role in leveraged transactions.
View LessonThe amortising senior secured tranche typically held by banks. Understand TLA structures, scheduled repayment profiles, relationship lending dynamics, and how TLAs differ from institutional term loans in pricing and investor base.
View LessonThe institutional workhorse of leveraged finance. Explore TLB structures, minimal amortisation with bullet maturities, covenant-lite packages, repricing mechanics, and how CLOs and credit funds drive demand in the institutional loan market.
View LessonOne facility, blended economics. Understand how unitranche structures combine senior and subordinated debt into a single tranche, the role of agreements among lenders, and why direct lenders have made unitranche a dominant feature of middle-market financing.
View LessonUnsecured or second-lien fixed-rate paper below investment grade. Cover bond indentures, call schedules, make-whole premiums, incurrence covenants, and how the high-yield market complements the leveraged loan market in large-cap financings.
View LessonThe layer between senior debt and equity. Explore mezzanine structures including PIK toggles, warrants, and equity kickers—and understand how subordinated debt fills financing gaps, enhances returns, and absorbs risk in complex capital structures.
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