medium · Corporate Credit Analysis distressed

Cascade Machineworks is in default with an estimated going-concern enterprise value of $408M. The capital structure consists of a $150M ABL revolver (first-out), a $400M first-lien Term Loan B, and $300M in senior unsecured notes.

Which tranche is the fulcrum security?

  1. Term Loan B
  2. Senior Unsecured Notes
  3. Common Equity
  4. ABL Revolver

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