easy · Private Equity advanced-lbo
In a Unitranche financing structure, what is the primary feature that distinguishes it from a traditional Senior/Subordinated debt stack?
- It allows the borrower to elect between paying interest fully in cash or partly in-kind (PIK).
- It requires the sponsor's fund to post a full 100% equity guarantee backing the entire loan.
- It is always secured personally by the CEO's individual assets rather than by the company's own assets.
- It blends senior and junior debt into a single credit facility with a single blended interest rate.
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