medium · Private Credit & Debt loan-structures-instruments
A 300 million unitranche is originated at 98 (2 points OID) with a 5.0-year maturity.
If the loan is repaid at the end of Year 3 at par (100), what is the approximate impact of the OID on the lender's annual yield-to-takeout?
- 200 bps
- 40 bps
- 67 bps
- 33 bps
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