medium · Private Credit documentation-covenants-terms
A company has a 'Most Favored Nation' (MFN) clause in its senior credit agreement.
If the company issues a new incremental 'accordion' facility at a spread of 600 bps, and the original facility's spread is 450 bps with an MFN protection of 50 bps, what is the new spread on the original facility?
- 600 bps
- 550 bps
- 500 bps
- 450 bps
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