medium · Private Equity
A unitranche loan of $150M has an all-in blended coupon of 8%. Through an Agreement Among Lenders (AAL), the facility is split into a first-out tranche of $75M and a last-out tranche of $75M.
If the first-out lenders are capped at a 5% yield, what is the implied yield for the last-out lenders?
- 13%
- 9%
- 10%
- 11%
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