medium · Corporate Credit Analysis

A unitranche facility of $250 million is priced at SOFR + 625 bps. Internally, the lenders split this into a 175 million 'first-out' piece at SOFR + 450 bps and a 75 million 'last-out' piece.

What is the implied spread for the last-out piece?

  1. 1,033 bps
  2. 1,250 bps
  3. 625 bps
  4. 800 bps

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