easy · Private Credit loan-structures-instruments
A sponsor-backed buyout of a manufacturing firm uses a $100 million unitranche facility. Behind the scenes, the facility is bifurcated: a bank holds the first-out tranche of $70 million at 5.0% interest, and a private credit fund holds the last-out tranche of $30 million at 10.0% interest.
What is the blended interest rate seen by the borrower?
- 6.50%
- 7.50%
- 5.00%
- 8.50%
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