medium · Private Credit & Debt loan-structures-instruments
An investor provides a 15M venture debt loan with an 8% cash coupon and a 3% PIK. The loan also includes warrants for 0.75% of equity.
If the company is sold after 24 months at a valuation that makes the warrants worth1.8M, what is the total cash received at exit (excluding interim coupons)?
- $16.80M
- $18.25M
- $15.90M
- $17.71M
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