hard · Private Equity
Calculate the year-1 gross yield for a $100M unitranche loan with the following terms: SOFR + 600 bps (1% floor), OID of 2.0 points (funded at 98), and an upfront fee of 2.0%. Assume SOFR is 4% at close and the loan remains outstanding.
- 14.00%
- 12.59%
- 10.00%
- 14.36%
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the actual SOFR rate drops to 0.50%, what is the total interest rate paid by the borrow
- In a European (whole-fund) waterfall, a fund has called $100… — How much 'carried interest
- What is the fund's Total Value to Paid-In (TVPI) multiple?
- What is the new effective conversion price for the growth equity investor?
- What is the maximum debt allowed if the leverage covenant is set at 5.0x Covenant EBITDA?
- If EBITDA remains exactly the same and no debt is paid down, which lever is the sole sourc
- If net debt remained constant at $200M throughout the hold, what was the primary source of
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on