medium · Investment Banking
A $400 million Term Loan B is priced at SOFR + 450 bps with a 1.0% SOFR floor and an OID of 99.0.
If the current SOFR rate is 0.5%, what is the total annual cash interest rate paid by the borrower (excluding OID amortization)?
- 6.5%
- 5.0%
- 5.64%
- 5.5%
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