medium · Private Credit & Debt loan-structures-instruments
A mezzanine lender provides $20M with an 8% cash coupon and 5% PIK, plus warrants for 1% of equity. At Year 5, the equity value is $366.47M and the PIK has accrued to $5.53M.
What is the lender's total cash flow at exit?
- $23.66M
- $25.53M
- $20.00M
- $29.19M
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