Traditionally, a unitranche was a debt facility which combined Senior Debt and Subordinated Debt into one instrument and offered the borrower a blended interest rate falling between the Senior and Subordinated individual interest rates.

Currently, the term refers more generically to a debt facility provided by Direct Lenders / Private Credit providers, which is typically in a more simplified Senior Debt financing.

If you would like to learn more about the financing process, please see our Termgrid Primers – Series 1: The Debt Financing Process.