What is the difference between bank debt and high-yield debt in an LBO?

• High-yield debt is always cheaper than bank debt because it sits senior in the capital structure
• They are essentially identical instruments that differ only in the name lenders give them, so a sponsor can freely swap one for the other without affecting cost or seniority
• Bank debt is senior, secured, floating, amortizing, and cheaper; high-yield is junior, fixed, bullet, and costlier
• Bank debt is unsecured and priced higher, while high-yield is the secured, cheaper senior tranche that lenders extend first because it carries the lowest risk in the structure
• Bank debt carries a fixed rate and amortizes, while high-yield floats and is prepayable at will