Medium Private Credit Practice Questions
312 free medium-difficulty Private Credit questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- Is the company in default?
- A loan agreement specifies that the borrower's Total Leverag… — How should this covenant be classified?
- What is the immediate consequence for the CLO Equity holders?
- If the equity tranche is $50M (10% of capital), what is the 'Cash-on-Cash' yield before defaults?
- If the company currently has $100M in debt, what is the minimum equity injection required to restore complianc
- If the expected life of the loan is 4 years and SOFR is currently 5.0%, what is the approximate all-in yield t
- If the company issues a new incremental 'accordion' facility at a spread of 600 bps, and the original facility
- What is the Covenant EBITDA?
- If SOFR resets to 0.50% and the loan is priced at 98.00 (OID), what is the current effective coupon rate?
- If the borrower draws20M while SOFR is 4.5%, what is the total annual cost of the facility in dollars?
- If the current SOFR rate is 0.50% and the loan is marked at 98.0 (fair value), what is the current yield?
- If SOFR rises to 6.00%, what is the borrower's effective interest rate?
- If the borrower's credit rating drops and the current market yield for similar risk is 11.5%, what is the Fair
- Which structure is most likely to result in a lower 'Loss Given Default' (LGD)?
- If the revolver is 20% drawn, is the borrower in default?
- What is the primary purpose of an 'upstream guarantee' from a subsidiary to a parent company borrower?
- Why would a lender require a 'Share Pledge' over the material subsidiaries of a borrower?
- When a borrower uses an Incremental Facility (Accordion) to fund an acquisition, the lender often requires tha
- A borrower uses a DDTL to fund an acquisition. The credit ag… — When does this amortization typically begin?
- What happens to the remaining $10 million of the Second Lien claim?
- In the context of institutional leveraged loans, a 'soft-call' provision typically triggers a premium in which
- In the context of call protection, what is the 'bond floor'?
- What is the typical 'Cushion' or 'Headroom' provided for an Interest Coverage Ratio (ICR) covenant at the clos
- What is the risk to a lender of a 'Covenant-Lite' loan that lacks an ECF sweep?
- A 'Minimum EBITDA' covenant is often used for which type of borrower?
- What is a 'Springing Financial Covenant'?
- If SOFR falls to 0.25%, what is the all-in interest rate paid by the borrower?
- What is the maximum percentage that EBITDA can decline before a technical covenant breach occurs?
- If SOFR rises from 1.00% to 5.00%, by how much does the borrower's annual interest expense increase?
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