medium · Private Credit & Debt loan-structures-instruments
A $100M unitranche loan facility is bifurcated via an Agreement Among Lenders (AAL). The 'first-out' lender provides $60M at a spread of SOFR + 300 bps. The total facility pays the borrower SOFR + 600 bps.
What is the implied spread earned by the 'last-out' lender on their $40M exposure?
- 1,050 bps
- 600 bps
- 900 bps
- 750 bps
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