medium · Private Credit documentation-covenants-terms
An 'Evergreen' private credit fund borrows on its revolving credit facility at SOFR + 200 with no floor. It lends at SOFR + 550 with a 1.00% floor.
If SOFR is 0.25%, what is the fund's gross interest spread?
- 350 bps
- 425 bps
- 525 bps
- 450 bps
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