easy · Corporate Credit Analysis cap-structure

A unitranche debt facility in private credit is distinct from a traditional senior/junior structure primarily because:

1. It uses a single credit agreement with a blended interest rate for the borrower.
2. It automatically converts into common equity once leverage exceeds 7.0x.
3. It requires the issuer to hold an investment-grade rating from two major agencies.
4. It prohibits the credit agreement from including any maintenance financial covenants at all.

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