medium · Private Credit loan-structures-instruments
A borrower defaults on a capital structure consisting of a $20.0 million Revolving Credit Facility (RCF), a $140.0 million First Lien Term Loan, and $40.0 million in Second Lien debt.
If the assets are liquidated for $150.0 million and the RCF has 'first-out' priority in the waterfall, what is the recovery for the First Lien Term Loan?
- 92.9%
- 81.3%
- 75.0%
- 100%
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 private credit fund is evaluating a 'Unitranche' loan for… — What is the borrower's expe
- A fund manager is valuing a senior loan to a private mid-mar… — Under ASC 820, how is this
- Which group is the fulcrum?
- What is the indicative margin for the 'last-out' lender?
- What is the primary risk factor the lender evaluates?
- If the company fails and liquidates for $2M after two years, what was the primary risk rea