medium · Corporate Credit Analysis
A company has $400 million of First Lien Debt and $200 million of Second Lien Debt.
If a distressed investor believes the company is worth 7.0x EBITDA and the trough EBITDA is $80 million, which tranche will the investor target for a loan-to-own strategy?
- Second Lien Debt
- First Lien Debt
- Senior Unsecured Notes
- Preferred Equity
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