hard · Private Credit & Debt
A $50 million First Lien Term Loan is issued with a 2.0% OID (Original Issue Discount). The coupon is SOFR + 600 bps.
If the loan is repaid at the end of Year 1, what is the effective 'Yield-to-Maturity' (or 'Yield-to-Takeout'), assuming SOFR = 4.0% and no other fees?
- 10.0%
- 11.0%
- 12.0%
- 14.0%
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