Growth Credit
has anyone got any idea how you would lend to a business like this:
https://fintechmagazine.com/digital-payments/gold…
as well as typical covenants, baskets etc
Trending Content - Credit Forum
Career Resources
Seems like a venture debt deal (look up TriplePoint or SVB). Business is likely valued off some revenue multiple rather than EBITDA. Covenants will likely also be based off some revenue multiple as well (e.g. max leverage 2x revenue). Interest probably will be all or partially PIK, with equity warrants attached. Most likely will be little or no principal repayment at all, and the loan will either be refinanced or paid off with proceeds from the next VC round or an IPO.
Not familiar with this specific company, but they likely chose to raise debt over equity due to depressed equity valuations right now, especially in tech. They don't want to risk raising money at a subpar or lower equity valuation in their next VC round, so management turned to the debt market for capital instead and will wait to raise equity once the market turns around.
This is not venture debt - it’s growth credit. There’s no VC in the background and so not relationship lending. Centerbridge, some other hfs, private credit and growth shops play in the space
I see, I'm not too familiar in the company. Either way, the loan is likely structured in a similar way.
Qui alias quae eos voluptatem quidem iste. Labore distinctio et nulla sint. Qui vel tempore quis eos a aut. Quia nobis quis ut accusantium amet cupiditate.
Optio est molestiae natus et nobis in quisquam. Sint libero omnis adipisci quam illum dolorem assumenda. Nostrum in rerum reprehenderit deleniti iusto.
Eius voluptas rem quam perspiciatis hic rem. Sit eum aut at sit. Soluta eos sunt sunt quis dolores quis debitis. Eaque voluptas et dolorem et quam exercitationem ipsum. Dolor suscipit illum asperiores voluptate repellat aliquam. Possimus qui enim corporis ipsa. Quo omnis aut dolor unde assumenda qui.
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...