medium · Private Credit portfolio-management-monitoring-workouts
A $200,000,000 Second-Lien loan is contractually subordinated to a $400,000,000 First-Lien facility. In a liquidation, the company's assets fetch $450,000,000.
After paying $10,000,000 in priority liquidation costs, what is the recovery for the Second-Lien tranche?
- 0%
- 73.3%
- 20%
- 25%
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