hard · Corporate Credit Analysis
A sponsor-backed company defaults with $200 million in ABL debt (first-out), $400 million in First-Lien Term Loans (second-out), and $400 million in Senior Unsecured Notes.
If the Distressed EBITDA is $100 million and the exit multiple is 7.0 ×, what is the recovery for the Senior Unsecured Notes assuming administrative fees of 3% of Enterprise Value?
- 19.8%
- 25.0%
- 0.0%
- 15.0%
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