medium · Corporate Credit Analysis
A $500 million senior secured Term Loan B (TLB) with a 6-year maturity carries a floating coupon of SOFR + 450 bps.
If the loan is issued at an Original Issue Discount (OID) of 97.0 and SOFR is 3.50%, what is the approximated effective annual yield to maturity?
- 11.00%
- 9.00%
- 8.00%
- 8.50%
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