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A Simple Overview of FILO and FOLO Loans
Covering the advantages and disadvantages of both loan types and walking through a case study
Welcome to the 64th Pari Passu newsletter.
Today, we are learning more about a technical concept that is often underappreciated: FILO and FOLO Loans. It has been several editions since we had the chance to dive into a technical topic, so I am excited for today’s edition.
Let’s dive into today’s post.
FILO and FOLO Loans
When thinking about a company's capital structure, many know the common types of debt: ABL/Cash revolvers, term loan A/B/Cs, senior/subordinated notes, high yield bonds, preferred debt, convertible debt, and equity. However, many are unaware of other types of loans available to companies: First-in, Last-out (FILO), and First-out Last-out (FOLO) loans.
FILO Loans

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