Asset backed senior loan with maximum loan-to-value of 40%; A preferred return (yield)...

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Finance

Asset backed senior loan with maximum loan-to-value of 40%;
A preferred return (yield) of at least 7%? year;
Maximum investment time horizon: 4 years, including the investment year which is assumed to be the current year of 2023.
Minimum Internal rate of return (IRR): 25%.
The level of funds to obtain from this investor is 60 million. The group of assets of the target company that you propose as collateral for this loan has been recently evaluated: 130 million.
Step 2: Answer the following questions:
Regarding the loan-to-value requirement, is the condition imposed by the target LP satisfied?
If not, what is your suggestion to overturn the problem assuming that the 60 million target is unchanged?
Assume the loan-to-value requirement is now guaranteed. Assume that the cash available for the fund is given by:
a) What is the expected value paid each year between 2024 and 2027 to the LP with respect to interest, repayment of principal and extra funds to guarantee required IRR?
b) Is this enough for the prospective LP?
c) If the answer to the previous question is no, give an example of extensions you could include in your deal proposal to negotiate with the prospective LP.
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