Credit memo Direct lending fund first round, Harlow Dental Partners
A sponsor is buying Harlow Dental Partners, a group of 140 dental offices in the Southeast, and asks us for a $225 million unitranche term loan. LTM EBITDA is $45 million. The loan prices at an all-in cash rate of 10 percent with 1 percent annual amortization. A $25 million super senior revolver from a bank sits ahead of us. Should we lend?
Written by Waddle Street. The company and every number are made up for practice.
Run it as a mock with an interviewer who follows up.