medium · Private Credit & Debt 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%
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