medium · Private Credit & Debt loan-structures-instruments
A borrower generates 20M in 'Excess Cash Flow' after all debt service and capex. The credit agreement mandates a 75% 'Cash Sweep' to prepay the Term Loan.
If the Term Loan has 100M outstanding, what is the balance after the sweep?
- $80M
- $85M
- $75M
- $95M
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