hard · Corporate Credit Analysis cap-structure
A 600 million unitranche facility has a pricing grid with steps of 25 bps for every 0.5x reduction in leverage below 5.5x.
If the starting margin is SOFR + 650 bps at 5.8x leverage, what is the margin if leverage improves to 4.4x?
- 575 bps
- 625 bps
- 550 bps
- 600 bps
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