medium · Private Credit loan-structures-instruments
A 'Unitranche' facility of $100.0M is provided at SOFR + 600 bps. The lender uses an Agreement Among Lenders (AAL) to sell a 'First-Out' risk participation of $70.0M to a bank at SOFR + 350 bps.
What is the effective 'Last-Out' spread earned by the unitranche lender on their remaining $30.0M of exposure?
- 6.00% (600 bps)
- 11.83% (1183 bps)
- 8.50% (850 bps)
- 9.50% (950 bps)
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