easy · Private Credit & Debt loan-structures-instruments
A private credit fund provides a $50,000,000 senior secured loan to BlueRock Manufacturing with a call protection provision of 'NC-1, then 101'.
What does the 'NC-1' portion of this provision signify?
- The borrower is prohibited from prepaying the loan entirely for the first year of the term.
- The lender cannot demand repayment for at least one year regardless of covenant breaches.
- The loan principal must be reduced by 1% through mandatory amortization in Year 1.
- The borrower must pay a 1% penalty if they choose to refinance within the first year.
Sign up free to see the explanation and track your rank →
More Private Credit & Debt loan-structures-instruments practice
- What is the blended interest rate paid by the borrower?
- What is the blended interest rate margin the borrower pays on the total facility?
- A private credit fund is evaluating a 'Unitranche' loan for… — What is the borrower's expe
- A fund manager is valuing a senior loan to a private mid-mar… — Under ASC 820, how is this
- Which group is the fulcrum?
- What is the indicative margin for the 'last-out' lender?
- What is the primary risk factor the lender evaluates?
- If the company fails and liquidates for $2M after two years, what was the primary risk rea