hard · Private Credit & Debt portfolio-management-monitoring-workouts
A middle-market company is acquired for 10.0× LTM EBITDA of $40M. The capital structure includes a First Lien Term Loan at 4.0×, a Second Lien Term Loan at 1.5×, and the remainder in Sponsor Equity.
If the business is liquidated for $200M, what is the recovery rate for the Second Lien lender?
- 0%
- 100%
- 66.7%
- 50%
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