hard · Private Equity & LBOs

A company is undergoing an in-court restructuring. Its enterprise value is estimated at $300.0M. The capital structure consists of $200.0M in senior secured debt, $150.0M in senior unsecured notes, and $100.0M in subordinated debt.

Which security is the 'fulcrum security'?

  1. The common equity.
  2. The subordinated debt.
  3. The senior secured debt.
  4. The senior unsecured notes.

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