easy · Private Equity
In a Unitranche financing structure, what is the primary feature that distinguishes it from a traditional Senior/Subordinated debt stack?
- It allows the borrower to elect between paying interest fully in cash or partly in-kind (PIK).
- It requires the sponsor's fund to post a full 100% equity guarantee backing the entire loan.
- It is always secured personally by the CEO's individual assets rather than by the company's own assets.
- It blends senior and junior debt into a single credit facility with a single blended interest rate.
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