hard · Private Equity
A middle-market borrower takes a $150 million unitranche loan with a cash coupon of 10.0% (SOFR + margin). The loan has a 2.0% upfront fee and a 2.0 point Original Issue Discount (OID).
If the loan is refinanced at the end of year four, what is the approximate gross yield to maturity (YTM)?
- 11.0%
- 10.5%
- 10.0%
- 14.0%
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