We examine the interaction between private debt and bank debt in corporate borrowing.

Combining administrative bank loan-level data with private debt deals, we document

that many U.S. private debt borrowers also borrow from banks. When co-financing

these dual borrowers, private debt lenders provide larger, relatively junior, and riskier

term loans with higher spreads, while banks offer credit lines. After accessing private

debt, dual borrowers obtain additional bank credit line commitments, reflecting greater

demand for liquidity insurance and imposing drawdown risks on banks. Our findings

suggest that private debt substitutes for banks’ term loans while complementing their

liquidity provision through credit lines.