medium · Private Credit loan-structures-instruments
A mezz investor provides $20M with 8% cash interest, 5% PIK, and warrants for 1% of equity. At Year 5, the company is sold for an EV of $572M. Debt senior to the mezzanine is $180M, and the mezzanine has accrued $5.53M in PIK.
What is the total cash proceeds to the mezzanine lender at exit (excluding interim cash interest)?
- $29.19M
- $23.66M
- $25.53M
- $31.25M
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