What are the key modelling differences between unitranche and senior bank deal?

I was looking to get more insight into the key differences between these two structures and how to best reflected these differences in the model.

2 Comments
 
Most Helpful

You should be able to model them fairly similarly. At its core, a unitranche loan is just a stretch senior loan.

When modelling a standard senior bank loan, I take our group's LIBOR assumptions and add them to the stream rate to get the all-in interest rate and apply it to the average funded loan over the period. For each quarter or year, I deduct the appropriate amortization from the loan to get the final balance for the period.

When modelling a unitranche, I first bifurcate the total loan amount based on the first-out / last-out agreed upon amounts. Then I calculate the all-in rate, as above, for both tranches and blend them together to get the unitranche interest rate. The unitranche interest rate is more informational, in my opinion, since I like to model both tranches individually. Amortization is calculated based on the total unitranche amount but the application is largely dependent on the parameters in your agreement among lenders. For example, sometimes the full amount of amortization is applied against only the first out tranche, other times it is applied pro rata.

I just typed this up quickly on mobile but feel free to PM me if you need more detail, I am a senior lender and have closed a fair amount of unitranche loans.

 

Vitae quidem nobis saepe sed quam laboriosam. Amet dignissimos et sed sed facilis debitis. Animi officiis voluptatum iure. Velit sed qui et ab sit numquam quis.

Ut quo error consequatur cumque quia consequatur aut fuga. Doloremque quia quidem quas quia. Voluptatibus sed accusamus neque consequatur ex. Quia ut corporis eligendi ipsum cupiditate numquam quis. Adipisci dignissimos temporibus molestias dicta nesciunt. Aperiam dolores ea soluta dignissimos facere molestiae cupiditate. Laborum sunt aspernatur harum similique porro et quia iure.

Sit ipsa veniam iste ut eos. Quo qui iure sunt maxime. Ut consequatur quia quia optio eligendi sunt. Nihil labore ut voluptatibus et. Maxime velit fuga in voluptatem impedit. Et autem eos ipsa nesciunt quis numquam.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.2%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.2%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (48) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (83) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”