What is Leveraged loan, term loan B, covenant-lite?

A leveraged loan is a loan, usually senior and secured on the borrower’s assets and paying a floating rate plus a spread, to a company whose debt is high relative to its earnings or whose credit is rated below investment grade. A term loan B is the tranche of such a loan arranged to be sold to institutional investors: a long maturity, little amortisation before it, and tradable. A covenant-lite loan has no maintenance covenants, financial ratios the borrower must meet at every test date; it keeps only incurrence covenants, which are tested when the borrower takes an action such as borrowing more.