medium · Private Credit & Debt loan-structures-instruments
A mezzanine lender provides a $20M loan with an 8% cash coupon and 5% PIK interest. The loan also includes warrants for 1% of fully diluted equity. After a 5-year hold, the company's equity value at exit is $366.47M.
What is the total realized value to the mezzanine lender at exit, excluding cash interest already paid?
- $23.66M
- $33.66M
- $25.53M
- $29.19M
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