medium · Private Credit loan-structures-instruments
A company with $40M EBITDA is acquired for 11.0×. The capital structure includes $140M in First Lien debt (3.5×) and $40M in Second Lien debt (1.0×).
What is the 'Equity Cushion' (or LTV attachment point) beneath the First Lien debt?
- 59.1%
- 68.2%
- 31.8%
- 50.0%
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