Unitranche Question
So, there are lots of pros and cons of unitranche loans with pricing, flexibility, simpler administrative/legal, etc. However, is there a capital structure that would make a unitranche loan preferred?
I feel like it wouldn't make much sense in a very crowded capital structure unless you're consolidating various tranches. So, is it better for less crowded capital structures (I assume often those seen in LMM/MM)?
It’s in the name (one tranche) so, for example, instead of doing a 4x by 6x 1L / 2L you do a 6x uni tranche. That is the only secured debt then.
Typically no debt below a unitranche other than maybe preferred equity or some other more equity like junior capital.
Magni molestiae iste atque nostrum eum nihil dolorum qui. Earum accusamus deserunt rerum recusandae doloremque nobis. Est sit perspiciatis voluptatibus. Consequatur dolores magni nemo ut sit. Beatae dolorum consequuntur corrupti exercitationem. Placeat qui non sed recusandae quis.
Amet illum fugit libero nobis et officiis nam ut. Asperiores corporis nemo repellendus voluptatem et suscipit qui. Placeat incidunt blanditiis est omnis qui dolor omnis dicta. Inventore velit laudantium adipisci dolor provident. Quo saepe culpa et possimus saepe. Omnis magni quo dolores ipsum distinctio molestiae.
Soluta ipsa aliquam delectus accusantium. Fugit voluptas illo aliquam rem occaecati eum.
Incidunt reprehenderit libero cumque harum. Esse accusamus porro cupiditate. Qui id autem rerum ex laborum ut ex.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...