medium · Private Credit documentation-covenants-terms
A borrower, 'Global Logistics', has $50 million of floating-rate debt at SOFR + 575 bps.
If SOFR rises from 1.00% to 5.00%, by how much does the borrower's annual interest expense increase?
- $3.375 million
- $0.5 million
- $2.875 million
- $2.0 million
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