Debt; claims, yield and repayment

Bank debt

Bank working-capital facility

A short-term facility funding inventory, receivables and ordinary operating cash needs.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating company
Capital position: Usually senior; may be secured
Common use: Smooth the cash-conversion cycle
Risk lens: Low to high; borrower-specific

Illustrative public or category examplesCommercial banksRelationship banksTrade-finance banks

Bank debt

Revolving credit facility

A committed line that can be drawn, repaid and redrawn subject to its terms.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating company
Capital position: Usually senior secured
Common use: Liquidity buffer, working capital or acquisitions
Risk lens: Borrower-specific

Illustrative public or category examplesCommercial banksSyndicated bank groups

Bank debt

Overdraft

A bank facility allowing an account balance to fall below zero up to an agreed limit.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating company
Capital position: Senior bank exposure
Common use: Very short-term liquidity
Risk lens: Borrower-specific

Illustrative public or category examplesCommercial banks

Bank or private debt

Term loan

Debt advanced for a defined period with scheduled or bullet repayment.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating or asset company
Capital position: Senior or subordinated
Common use: Expansion, acquisition, capex or refinancing
Risk lens: Borrower-specific

Illustrative public or category examplesCommercial banksPrivate-credit fundsDevelopment lenders

Senior debt

Senior secured debt

First-ranking debt supported by security over identified assets, cash flows or shares.

Illustrative public proxy5.9% return; 7.4% yield

KKR 5-year expected annualized return and current yield for leveraged loans in USD; this is not borrower all-in cost.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established borrower
Capital position: Senior secured; first recovery priority
Common use: Acquisition, refinancing or growth
Risk lens: Lower within leveraged capital

Illustrative public or category examplesCommercial banksAres CreditPrivate-credit funds

Senior debt

Senior unsecured debt

Senior-ranking debt without specific collateral, relying on the issuer's general credit.

Illustrative public proxy4.3% return; 4.8% yield

KKR 5-year expected annualized return and current yield for US corporate bonds in USD.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established issuer
Capital position: Senior unsecured
Common use: Corporate funding and bond issuance
Risk lens: Issuer-specific

Illustrative public or category examplesInvestment-grade bond investorsCommercial banksInsurance investors

Private credit

Unitranche debt

A single facility blending senior and junior risk into one negotiated loan.

Illustrative public proxy6.7% return; 8.1% yield

KKR 5-year expected annualized return and current yield for direct lending in USD; deal pricing and realized loss experience vary.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Sponsor-backed or established
Capital position: Contractually senior; economics are blended
Common use: Simplify leveraged acquisition financing
Risk lens: Medium to high

Illustrative public or category examplesAres CreditPrivate-credit fundsDirect lenders

Private credit

Non-publicly traded lending originated or held by specialist funds and institutional accounts.

Illustrative public proxy6.7% return; 8.1% yield

KKR 5-year expected annualized return and current yield for direct lending in USD; deal pricing and realized loss experience vary.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established or special situation
Capital position: Senior, unitranche or junior
Common use: Flexible non-bank capital
Risk lens: Medium to high

Illustrative public or category examplesAres CreditBlackstone CreditKKR Credit

Private credit

Direct lending

Privately negotiated loans originated directly to companies, commonly in the middle market.

Illustrative public proxy6.7% return; 8.1% yield

KKR 5-year expected annualized return and current yield for direct lending in USD; deal pricing and realized loss experience vary.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established company
Capital position: Usually senior secured
Common use: Growth, acquisition or refinancing
Risk lens: Medium to high

Illustrative public or category examplesAres CreditPrivate-credit fundsInstitutional direct lenders

Growth debt

Venture debt

Debt for venture-backed companies, often combined with warrants and milestone-based availability.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Venture-backed growth
Capital position: Senior secured, commonly with warrants
Common use: Extend runway or fund a milestone
Risk lens: High

Illustrative public or category examplesHercules CapitalSpecialist venture lendersInnovation banks

Growth debt

Debt for scaling companies with institutional backing or recurring revenue but limited conventional collateral.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Scaling company
Capital position: Senior secured or structured
Common use: Fund growth while limiting immediate dilution
Risk lens: High

Illustrative public or category examplesHercules CapitalPrivate-credit fundsGrowth lenders

Transaction debt

Acquisition financing

Debt raised to fund the purchase of a company, division or asset.

Illustrative public proxy5.9% return; 7.4% yield

KKR 5-year expected annualized return and current yield for leveraged loans in USD; this is not borrower all-in cost.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: M&A transaction
Capital position: Senior, unitranche, mezzanine or bridge
Common use: Complete a strategic or sponsor acquisition
Risk lens: Medium to high

Illustrative public or category examplesCommercial banksAres CreditLeveraged-finance investors

Syndicated credit

Leveraged loan

A loan to a borrower with higher leverage, lower credit quality or both.

Illustrative public proxy5.9% return; 7.4% yield

KKR 5-year expected annualized return and current yield for leveraged loans in USD; this is not borrower all-in cost.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Leveraged corporate or buyout
Capital position: Usually senior secured
Common use: Buyout, recapitalization or refinancing
Risk lens: High

Illustrative public or category examplesSyndicated banksCLOsLoan funds

Short-term debt

Bridge loan

Interim financing intended to be repaid through a sale, refinancing, bond issue or longer-term facility.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Transaction or transition
Capital position: Varies
Common use: Close before permanent financing is available
Risk lens: High execution and refinancing risk

Illustrative public or category examplesInvestment banksCommercial banksPrivate-credit funds

Secured debt

Asset-based lending

A facility sized and monitored against eligible receivables, inventory, equipment or other assets.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating company
Capital position: Senior secured
Common use: Working capital and liquidity
Risk lens: Collateral and operating risk

Illustrative public or category examplesCommercial banksAsset-based lendersPrivate-credit funds

Working-capital debt

Receivables financing

Financing supported by amounts owed by customers or project buyers.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating or project company
Capital position: Assignment or security over receivables
Common use: Accelerate cash collection
Risk lens: Debtor, dilution and collection risk

Illustrative public or category examplesCommercial banksFactoring companiesTrade-finance funds

Working-capital debt

Trade finance

Facilities and instruments supporting payment and performance across the movement of goods and services.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Trading company
Capital position: Instrument-specific
Common use: Fund imports, exports and supply chains
Risk lens: Counterparty, country and documentation risk

Illustrative public or category examplesTrade-finance banksIFCExport credit agencies

Asset finance

Equipment financing

Debt or leasing used to acquire machinery, technology or other productive equipment.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Operating or project company
Capital position: Secured by equipment
Common use: Fund capex while matching asset life
Risk lens: Asset value and operating risk

Illustrative public or category examplesCommercial banksLeasing companiesEquipment lenders

Real-estate debt

Commercial mortgage

Debt secured by income-producing commercial property.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Stabilized property
Capital position: Senior mortgage
Common use: Acquire or refinance property
Risk lens: Property and tenant risk

Illustrative public or category examplesCommercial banksInsurance lendersReal-estate debt funds

Development debt

Real-estate construction loan

Drawn financing for construction costs, commonly subject to budgets, milestones and presales or leasing evidence.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Development
Capital position: Senior secured project debt
Common use: Build a property project
Risk lens: High construction and sales risk

Illustrative public or category examplesCommercial banksDevelopment lendersPrivate-credit funds

Project debt

Infrastructure debt

Long-duration debt supported by infrastructure assets, contracts and cash flows.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Development or operating asset
Capital position: Usually senior secured
Common use: Build, acquire or refinance infrastructure
Risk lens: Project and contractual risk

Illustrative public or category examplesCommercial banksIFCPension and insurance investors

Project debt

Project finance debt

Limited- or non-recourse debt repaid primarily from an SPV's project cash flows.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Project SPV
Capital position: Senior secured over project rights and cash flows
Common use: Ring-fence a large asset or concession
Risk lens: Construction, offtake and operating risk

Illustrative public or category examplesCommercial banksIFCDevelopment finance institutions

Junior debt

Mezzanine debt

Subordinated capital with a higher coupon and possible equity participation.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Buyout, development or recapitalization
Capital position: Below senior debt; above equity
Common use: Fill a financing gap
Risk lens: High

Illustrative public or category examplesMezzanine fundsPrivate-credit fundsFamily offices

Junior debt

Subordinated debt

Debt contractually or structurally ranking behind senior obligations.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established or project
Capital position: Junior to senior debt
Common use: Increase leverage or regulatory capital
Risk lens: High

Illustrative public or category examplesCredit fundsInsurance investorsSpecial-situations funds

Junior secured debt

Second-lien debt

Secured debt whose lien ranks behind first-lien lenders over shared collateral.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Leveraged corporate
Capital position: Second lien
Common use: Add leverage after a first-lien facility
Risk lens: High

Illustrative public or category examplesPrivate-credit fundsHigh-yield investorsSpecial-situations funds

Junior debt

Payment-in-kind debt

Debt allowing some or all interest to accrue into principal rather than being paid in cash.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Holdco, buyout or stressed borrower
Capital position: Usually junior or structurally subordinated
Common use: Preserve near-term cash
Risk lens: Very high

Illustrative public or category examplesPrivate-credit fundsMezzanine fundsSpecial-situations investors

Hybrid debt

Convertible note

Debt that can convert into equity under specified events or terms.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Early-stage or restructuring
Capital position: Debt before conversion; equity after
Common use: Defer valuation or combine downside and upside
Risk lens: Very high

Illustrative public or category examplesAngel investorsVenture fundsStrategic investors

Special situations

Distressed debt

Debt acquired or originated where the borrower faces financial stress, default risk or restructuring.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Stressed or insolvent
Capital position: Position depends on claim
Common use: Restructure, rescue or acquire at a discount
Risk lens: Very high

Illustrative public or category examplesSpecial-situations fundsDistressed-debt fundsAres opportunistic credit

Special situations

Rescue financing

New capital provided to stabilize a distressed company and fund an agreed turnaround or transaction.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Distressed
Capital position: Often super-senior or strongly secured
Common use: Fund liquidity through a restructuring
Risk lens: Very high

Illustrative public or category examplesSpecial-situations fundsExisting lendersStrategic investors

Insolvency finance

Debtor-in-possession financing

Court-supervised financing for a debtor continuing to operate during a qualifying reorganization process.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Formal restructuring
Capital position: Priority depends on court and law
Common use: Fund operations during reorganization
Risk lens: Very high; jurisdiction-specific

Illustrative public or category examplesSpecial-situations lendersExisting secured lenders

Public debt

High-yield bond

A bond issued by a below-investment-grade borrower, offering higher yield for higher credit risk.

Illustrative public proxy5.6% return; 7.2% yield

KKR 5-year expected annualized return and current yield for US high-yield bonds in USD.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established issuer
Capital position: Senior or subordinated; secured or unsecured
Common use: Raise tradable term debt
Risk lens: High

Illustrative public or category examplesHigh-yield fundsAsset managersInsurance investors

Public debt

Investment-grade bond

A bond carrying an investment-grade credit rating at issuance or observation.

Illustrative public proxy4.3% return; 4.8% yield

KKR 5-year expected annualized return and current yield for US corporate bonds in USD.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Established issuer
Capital position: Usually senior unsecured
Common use: Raise long-term public debt
Risk lens: Lower credit risk; rate and duration risk remain

Illustrative public or category examplesPension fundsInsurance companiesBond funds

Thematic debt

Green bond

A bond whose proceeds are earmarked for eligible environmental projects under the relevant framework.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Public or private issuer
Capital position: Determined by bond terms
Common use: Fund eligible green expenditure
Risk lens: Issuer credit plus framework risk

Illustrative public or category examplesIFCDevelopment banksGreen-bond funds

Islamic capital markets

Sukuk

A Shariah-compliant certificate structured around ownership, usufruct, assets or contractual cash flows.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Corporate, sovereign or project
Capital position: Structure-specific
Common use: Raise Islamic capital-market funding
Risk lens: Issuer, asset and structural risk

Illustrative public or category examplesSovereign issuersIslamic banksInstitutional investors

Alternative finance

Revenue-based financing

Capital repaid through an agreed share of revenue until a cap, maturity or other endpoint is reached.

Deal-specificReliable public range unavailable

A single public range would create false precision. Use the term sheet, comparable transactions and current market evidence.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Revenue-generating growth company
Capital position: Contractual claim; often unsecured
Common use: Fund growth with variable repayments
Risk lens: High operating volatility

Illustrative public or category examplesSpecialist revenue-finance fundsGrowth lendersFamily offices

Debt; claims, yield and repayment

Follow the repayment source

Bank working-capital facility

Revolving credit facility

Overdraft

Term loan

Senior secured debt

Senior unsecured debt

Unitranche debt

Private credit

Direct lending

Venture debt

Growth debt

Acquisition financing

Leveraged loan

Bridge loan

Asset-based lending

Receivables financing

Trade finance

Equipment financing

Commercial mortgage

Real-estate construction loan

Infrastructure debt

Project finance debt

Mezzanine debt

Subordinated debt

Second-lien debt

Payment-in-kind debt

Convertible note

Distressed debt

Rescue financing

Debtor-in-possession financing

High-yield bond

Investment-grade bond

Green bond

Sukuk

Revenue-based financing