Calculator
Unitranche or senior debt and mezzanine
The calculator finances the same debt in two ways: a unitranche, or senior debt topped up with mezzanine. It gives the weighted coupon, the annualised all-in cost, the debt service of each year and the leverage at year end.
Unitranche
9.31%
annualised all-in cost
Senior and mezzanine
9.16%
annualised all-in cost
Leverage at signing: 4.00x EBITDA for both structures, of which 2.80x is senior debt in the two-tranche structure.
| Item | Unitranche | Senior and mezzanine |
|---|---|---|
| Weighted average coupon at signing | 8.75% | 7.80% |
| Arrangement fees or OID | €2.50m | €2.00m |
| Interest paid over the life of the loan | €52.50m | €30.62m |
| Capitalised interest | €0.00m | €7.96m |
| Total cost | €55.00m | €40.58m |
| Annualised all-in cost | 9.31% | 9.16% |
| Amount to refinance at maturity | €100.00m | €37.96m |
| Year | EBITDA | Unitranche service | Senior and mezzanine service | Unitranche leverage | Senior and mezzanine leverage |
|---|---|---|---|---|---|
| Year 1 | €26.25m | €8.75m | €18.27m | 3.81x | 3.41x |
| Year 2 | €27.56m | €8.75m | €17.66m | 3.63x | 2.87x |
| Year 3 | €28.94m | €8.75m | €17.06m | 3.46x | 2.38x |
| Year 4 | €30.39m | €8.75m | €16.47m | 3.29x | 1.92x |
| Year 5 | €31.91m | €8.75m | €15.87m | 3.13x | 1.51x |
| Year 6 | €33.50m | €8.75m | €15.29m | 2.98x | 1.13x |
The initial values are a sample input to replace with the terms of your offers. This calculation gives an order of magnitude and does not bind any lender.
Method
The calculation formulas
Interest is calculated once a year on the outstanding principal. The mezzanine is repaid at maturity together with its capitalised interest. The annualised all-in cost is the rate that equates the net amount received at signing with the flows paid until repayment, including the amount to refinance.
Weighted coupon
Weighted coupon = (senior × senior rate + mezzanine × total mezzanine coupon) ÷ total debt
Debt service
Debt service of the year = interest paid in cash + scheduled amortisation
Leverage
Year end leverage = outstanding principal including capitalised interest ÷ EBITDA of the year
Example
Worked example
A company with €25m of EBITDA seeks €100m over 6 years, a leverage of 4.00x. The bullet unitranche carries a coupon of 8.75% and an annualised all-in cost of 9.31%. The two-tranche structure combines amortising senior debt with €30.00m of mezzanine. Its weighted coupon stands at 7.80% and its annualised all-in cost at 9.16%. Its debt service reaches €18.27m in year 1, compared with €8.75m for the unitranche. The terms of this example are sample inputs.
Benchmarks
Unitranche, senior and mezzanine in private debt in France
| Debt type | Transactions 2025 | Amounts 2025 | Share of 2025 amounts | Amounts 2024 |
|---|---|---|---|---|
| Unitranche | 106 | €8,362m | 56% | €6,836m |
| Senior debt | 190 | €5,149m | 35% | €3,623m |
| Mezzanine and subordinated debt | 68 | €1,338m | 9% | €1,169m |
A transaction counts in several rows when it combines several types of debt.
| Debt type | Average amount |
|---|---|
| Unitranche | €78.9m |
| Senior debt | €27.1m |
| Mezzanine and subordinated debt | €19.7m |
| All transactions | €43.4m |
Calculated average: amounts invested divided by the number of transactions.
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