easy · Private Credit loan-structures-instruments
A 100M unitranche facility is structured with a 70M 'first-out' tranche priced at SOFR + 400 bps and a 30M 'last-out' tranche at SOFR + 900 bps.
If SOFR is 5.00%, what is the blended interest rate to the borrower?
- 10.50%
- 14.00%
- 11.50%
- 9.00%
Sign up free to see the explanation and track your rank →
More Private Credit loan-structures-instruments practice
- What is the blended interest rate paid by the borrower?
- What is the blended interest rate margin the borrower pays on the total facility?
- A fund manager is valuing a senior loan to a private mid-mar… — Under ASC 820, how is this
- A private credit fund is evaluating a 'Unitranche' loan for… — What is the borrower's expe
- Which group is the fulcrum?
- What is the indicative margin for the 'last-out' lender?
- What is the primary risk factor the lender evaluates?
- What is the most plausible reason for the 200 bps 'Non-Sponsor Premium'?