medium · Private Equity advanced-lbo
A sponsor is comparing two debt structures: (A) $100M First-Lien at SOFR + 400 bps and 50M Second-Lien at SOFR + 850 bps; or (B) a $150M Unitranche facility.
To be cost-neutral on a blended basis, what should the Unitranche spread over SOFR be?
- 450 bps
- 625 bps
- 500 bps
- 550 bps
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