medium · Private Credit & Debt documentation-covenants-terms
In a competitive auction, Lender A offers SOFR + 575 with a 1.00% floor. Lender B offers SOFR + 625 with a 0.50% floor.
At what SOFR level would the borrower be indifferent between the two offers?
- 0.50%
- 1.00%
- 0.25%
- 0.75%
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