medium · Corporate Credit Analysis
A sponsor-backed borrower is issuing a 7-year Term Loan B at a spread of L+425 bps with an Original Issue Discount (OID) of 98.0.
Assuming a standard 4-year average life for the facility, what is the approximate effective yield (all-in spread) to the investor?
- 475 bps
- 453 bps
- 450 bps
- 500 bps
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