medium · Private Equity
An investor is considering a 'Unitranche' facility at 7.5% interest versus a 'Senior/Mezzanine' split (65% Senior at 5.5%, 35% Mezzanine at 11.0%).
Which option has the lower weighted average cost of debt?
- Unitranche
- They are identical
- Senior/Mezzanine Split
- Insufficient data
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