hard · Private Equity & LBOs
A mezzanine lender provides $50M of financing to a portfolio company with a 10% cash coupon and a 4% PIK (Payment-in-Kind) component.
If the company is sold after exactly two years with no prior principal repayments, what is the total debt obligation owed to the mezzanine lender (ignoring cash interest already paid)?
- 54.0M
- 54.1M
- 52.0M
- 64.0M
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