In one sentence
A single blended loan combining what would otherwise be senior and subordinate debt into one facility at one blended rate.
The longer version
A unitranche merges senior and mezzanine-like debt into a single loan, simplifying the borrower's capital stack and documentation. Behind the scenes, lenders may still divide the economics through an agreement among lenders.
Common in middle-market and private-credit lending, unitranche structures streamline the borrower's experience while shifting complexity to the lender side.
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