medium · Corporate Credit Analysis credit-metrics

NovaChem AG has $2.5B of commercial paper (CP) outstanding backstopped by a $3.0B revolver priced at SOFR + 100 bp.

If the CP market closes and the issuer must draw the revolver at a cost of 6.4% while the CP was at 5.1%, what is the annualised incremental interest expense impact?

  1. $32.5M
  2. $39.0M
  3. $25.0M
  4. $160.0M

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