medium · Private Credit & Debt loan-structures-instruments
An elite credit manager, 'Titan Capital', analyzes a $150 million unitranche facility. The facility is bifurcated via an Agreement Among Lenders (AAL) into a $100 million 'first-out' tranche paying SOFR + 350 bps and a $50 million 'last-out' tranche.
If the borrower pays a total blended rate of SOFR + 650 bps, what is the implied spread on the last-out position?
- SOFR + 950 bps
- SOFR + 800 bps
- SOFR + $1,250 bps
- SOFR + $1,000 bps
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