medium · Private Credit documentation-covenants-terms
A borrower with $300,000,000 of floating-rate debt at SOFR + 500 bps enters into an interest rate swap. They agree to pay a fixed rate of 4.00% and receive SOFR.
What is their all-in fixed interest cost?
- 5.00%
- 9.00%
- 13.00%
- 4.00%
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