hard · Private Credit & Debt
In a 'loan-to-own' strategy, an investor acquires the fulcrum security of Horizon Solutions at 40 cents on the dollar. The capital structure has $300 million in Senior Debt and $200 million in Junior Notes.
If the restructuring Enterprise Value is determined to be $420 million, and the Junior Notes are converted into 100% of the new equity, what is the investor's implied MOIC on the position?
- 2.5x
- 1.5x
- 1.05x
- 0.6x
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