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Question
Ford Motor Company needs to borrow $50 million. The First National Bank creates a packaged loan with several other banks to lend to Ford Motor Company. This loan package can be sold on the secondary market and carries a rate that is 400 basis points above LIBOR. The First National Bank expects this loan package to ultimately be held by a finance company looking for a good return on their money? What type of loan is this most likely to be?
A. Term business loan
B. Revolving credit financing
C. Long-term project loan
D. Leveraged buyout
E. Syndicated loan
Answer
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Related questions
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