medium · Private Equity
A unitranche loan of 200 million is priced at L + 700 bps with a 1.0% LIBOR floor and 2.0% OID.
If LIBOR is currently 0.5%, what is the effective annual cash interest rate for the borrower (excluding OID amortization)?
- 7.0%
- 8.0%
- 9.0%
- 7.5%
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