medium · Corporate Credit Analysis cap-structure
A unitranche facility is often described as 'vertically integrating' the capital stack.
What does this mean?
- The loan maturity is tied to the useful life of the company's fixed assets, matching debt to depreciation.
- The debt tranche blends US dollar and Euro-denominated notes to reduce currency mismatch risk.
- The borrower operates in manufacturing and owns its entire upstream and downstream supply chain.
- A single documentation package covers multiple levels of seniority that would otherwise be separate.
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