easy · Private Credit & Debt documentation-covenants-terms
A direct lender provides a $100M term loan at a spread of 550 bps over Term SOFR with a 1.00% SOFR floor.
If Term SOFR is currently 0.75% and the loan was issued with a 2.0% Original Issue Discount (OID) over a 5-year tenor, what is the approximate all-in yield to the lender?
- 6.90%
- 11.00%
- 10.90%
- 7.15%
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