Jul 05, 2023

Modeling a unitranche loan vs. senior secured?

Can someone highlight the main differences in modeling between a unitranche loan vs senior secured?

Im sure it depends on the final structure but if anyone has a model/knows of a publicly available model which includes a unitranche TL I’d love to take a look.

Thanks!

 

How would a FOLO differ? you just model out the first out portion vs the last out portion on 2 different lines?

 
Most Helpful

Not sure what you are asking. The only things I can think of given the vagueness of the question would be 1) loans tend to pay quarterly, vs bonds paying semi-annually, 2) a term will typically amortize 1% a year, quarterly, where as the senior secured bond won't amortize, and 3) the loan will be attached to a spread, SOFR, where as the bond will be fixed, and therefore you'd need to use the forward curve to assume the SOFR spread. 

 

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