Asset backed senior loan with maximum loan$-$to$-$value of $40\%$;

A preferred return $($yield$)$ of at least $7\frac{\%}{?}$ 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$.$