hard · Private Credit & Debt
A middle-market company is liquidated for $180 million. The capital structure consists of a $20 million Revolving Credit Facility, a $130 million First Lien Term Loan, a $50 million Second Lien Term Loan, and $150 million in Sponsor Equity.
Following the absolute priority rule, what is the recovery rate for the Second Lien Term Loan?
- 0%
- 60%
- 36%
- 100%
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