medium · Private Equity pe-core
A distressed investor purchases senior unsecured notes at 45 cents on the dollar. In the recovery waterfall, the company's reorganization value is $280M. Administrative claims are $10M, senior secured claims are $200M, and the senior unsecured class has a $100M total claim.
What is the investor's expected return on this trade?
- 100.0%
- 25.0%
- 55.6%
- 70.0%
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