hard · Private Credit & Debt portfolio-management-monitoring-workouts
In a 'loan-to-own' strategy, an investor acquires the fulcrum security of Horizon Solutions at 40 cents on the dollar. The capital structure has $300 million in Senior Debt and $200 million in Junior Notes.
If the restructuring Enterprise Value is determined to be $420 million, and the Junior Notes are converted into 100% of the new equity, what is the investor's implied MOIC on the position?
- 2.5x
- 1.5x
- 1.05x
- 0.6x
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