medium · Private Credit & Debt 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%
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