medium · Corporate Credit Analysis distressed
A mid-market manufacturer, Cascade Machineworks, has a $150M ABL, a $400M Term Loan B, and $300M in senior unsecured notes.
If the company defaults and the liquidation value of its assets is determined to be $350M (before $14M in professional fees), which tranche is the 'fulcrum security'?
- ABL Revolver
- Common Equity
- Term Loan B
- Senior Unsecured Notes
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