medium · Private Equity advanced-lbo
An LBO is structured with 3.0x Senior Debt and 1.0x Mezzanine Debt on 50M EBITDA. The Mezzanine tranche carries a 10% cash coupon and 4% PIK interest.
If the company makes no principal repayments, what is the Mezzanine debt balance at the end of a 5-year hold?
- 60.83M
- 70.00M
- 50.00M
- 93.25M
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