easy · Private Credit & Debt documentation-covenants-terms
In the context of institutional leveraged loans, a 'soft-call' provision typically triggers a premium in which specific scenario?
- The borrower uses excess cash flow from operations to pay down the principal.
- The company is sold to a strategic acquirer and the debt is retired at par.
- The lender exercises their right to accelerate the debt following a payment default.
- Repayment of the loan using proceeds from a lower-priced debt refinancing.
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