I am working on doing a debt restructuring model for a company and want to know if I can add the Interest Rate Swap expense back ( as interest )to my earnings since it would be wiped out with the debt restructuring.
It would be adding 5,000,000 to my EBITDA
Anyone do this before? It makes my numbers that much more compelling to the new creditors.
Thanks in advance
| +253 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 18 | 16m | |
| +151 | Investment Banking US League Table YTD 2024 (FactSet) | 84 | 11h | |
| +143 | Big Layoff at Barclays - 5/1/24 | 80 | 8s | |
| +87 | “Americans just work harder” | 53 | 1d | |
| +83 | Would comitting to ATL İB be stupid? Please give feedback. | 45 | 3d | |
| +68 | Sleeping on Jefferies??? | 33 | 3s | |
| +66 | A shitter's comprehensive guide to sophomore year recruiting | 7 | 22h | |
| +59 | NEED NY RESTAURANT RECOMMENDATIONS | 38 | 3d | |
| +58 | What's up with RBC nowadays? | 24 | 18h | |
| +50 | 5-Step (Borderline Psycho) Pre-Superday Routine I Used to Land Every IB Internship Offer | 4 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Interested as well. I think you would need to expense it back at market price, which would depend on the reference price so I don't know how you would mark to market so far out in the future.
you should keep in mind that the swap will crystallise, become pari with seniors and then you'll have to take out a new swap for the (probably smaller) new floating debt, but swap costs may be higher (but most likely not as most swaps these days are so out of the money because they locked in at 4%)..
Id exercitationem exercitationem in repudiandae aliquid voluptatem. Magnam at iure nesciunt eum reiciendis. Libero sint dolor dolore velit amet odio minus. A magnam corrupti quia et cumque consequatur. Iure optio aut veritatis dolorem et aliquam consequatur.
Maxime quisquam qui sunt et. Dolorem sequi est porro quia vel molestiae voluptas tempora. Ducimus ullam dicta velit sed cupiditate.
Quia cumque non autem explicabo nostrum eius suscipit. Numquam sint pariatur voluptatum consectetur exercitationem officiis. Aliquid consequatur a repellendus. Minus et quia sit.
Qui voluptas tempore possimus velit. Quam labore et ipsam dolorum voluptas voluptas velit. Labore perspiciatis perspiciatis nihil dolore et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...