hard · Private Credit & Debt
A mezzanine lender's 'Equity Kicker' is typically structured in which form to provide upside participation?
- A step-up in the cash margin if the company's leverage exceeds 5.0x.
- A senior lien on the company's intellectual property assets.
- A 'Make-Whole' provision that guarantees a minimum IRR if the loan is prepaid.
- Detachable warrants for a small percentage of the company's common equity.
Sign up free to see the explanation and track your rank →
More Private Credit & Debt practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower mus
- What is the Dividend Coverage ratio?
- What is the blended interest rate paid by the borrower?
- What is its current Debt-to-Equity (Leverage) ratio?
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo