Which option gives Pinder LLC a higher IRR on its investment? Assume that all other conditions of the buyout are identical to the assumptions in the lecture.

Pinder LLC is planning on a leveraged buyout of Value Co. To finance the buyout, Pinder approaches two banks for conditions on their term loans. Bank A offers Pinder LLC a $4 billion term loan with a Libor floor of 1% and a spread of 5%. However, the conditions of the loan prevents Pinder LLC from borrowing additional funds by issuing senior notes. Bank B offers Pinder LLC a $2 billion term loan with a Libor floor of 1.25% and a spread of 4.50%. The loan from Bank B does not prevent Pinder LLC from borrowing additional funds by issuing senior notes. Which option gives Pinder LLC a higher IRR on its investment? Assume that all other conditions of the buyout are identical to the assumptions in the lecture.
(For this question, the answer does not need to be handwritten. You only need to copy paste the relevant sensitivity tables containing the entry and exit multiples at 8.0x EBITDA after making the necessary changes to the template. Make sure the assumptions in the lecture are correctly inputted in the template – the IRR prior to making changes should be 19.7%.)