medium · Private Credit loan-structures-instruments
A First-Out lender in a unitranche structure earns SOFR + 350 and holds 60% of the facility. The Last-Out lender holds 40% and the borrower pays a blended SOFR + 550.
What is the spread earned by the Last-Out lender?
- SOFR + 750
- SOFR + 850
- SOFR + 950
- SOFR + 650
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