medium · Private Equity advanced-lbo
A $400M Term Loan B has an interest rate of SOFR + 500 bps (1% floor). If SOFR is 4%, and the loan has 1% mandatory annual amortization and a 50% excess cash flow sweep, calculate interest expense for Year 1 if excess cash flow is $40M.
- $36.0 million
- $33.8 million
- $35.6 million
- $34.9 million
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