easy · Private Credit & Debt loan-structures-instruments
A mezzanine investment of $20M is made in a company with $40M of EBITDA. The terms include an 8% cash coupon, 5% PIK, and warrants for 1% of equity.
If the company is sold in Year 5 for an equity value of $366.47M, what is the total cash inflow to the mezzanine lender in Year 5 (excluding prior years' cash interest)?
- $25.53M
- $29.19M
- $30.80M
- $37.19M
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