Unitranche

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 PhD - 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

Other resource

• What is unitranche debt?