medium · Private Credit loan-structures-instruments
A distressed investor analyzes a liquidation scenario. A company's assets are sold for $250M. The capital stack consists of a $20M Revolver, a $140M First Lien Term Loan, a $40M Second Lien Term Loan, and $20M in Mezzanine Debt.
What is the recovery rate for the Mezzanine Debt?
- 75.0%
- 50.0%
- 100.0%
- 0.0%
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