Unitranche: Difference between revisions
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(Create page - source - CFI - https://corporatefinanceinstitute.com/resources/commercial-lending/unitranche-debt/) |
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Revision as of 00:26, 11 May 2024
Debt - senior debt - subordinated debt - hybrid structures.
Unitranche debt combines senior debt and subordinated debt into a single structure.
The borrower pays a blended rate of interest, falling between the rates for senior debt and subordinated debt.
(Source - CFI).
- Private credit unitranche loan
- "Another example: private credit investor Hayfin provided a €410m unitranche loan to enable TV company HSE24 to pay a dividend to its private equity (PE) owner, Providence.
- The unitranche format is typically more expensive than individual lines of credit, but not the most expensive."
- Giving credit to private finance - Permjit Singh FCT - The Treasurer - Issue 2, 2024, p18.
See also
- Corporate Finance Institute (CFI)
- Credit
- Credit line
- Investor
- Issuer
- Junior
- Loan
- Maturity
- Private equity (PE)
- Risk
- Security
- Senior
- Subordinated debt
- Tranche
- Yield
