medium · Corporate Credit Analysis distressed

An analyst construction of a 'Recovery Waterfall' for 'Ironclad Corp' (Total EV = $800M). The debt stack includes:$200M Secured Revolver, $500M First-Lien Term Loan, and $400M Senior Unsecured Notes.

After accounting for $40M in administrative insolvency costs, what is the recovery rate for the Senior Unsecured Notes?

  1. 15.0%
  2. 25.0%
  3. 0.0%
  4. 60.0%

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