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
| +168 | Why do JEF bankers always think they’re EB? | 53 | 4d |
| +84 | Do people still want to go PE? | 27 | 2h |
| +60 | Bloomberg - New UBS Investment Bankers See Smaller Pay Gain on Promotion | 12 | 1d |
| +46 | Think I'm fucking up my analyst years | 16 | 2d |
| +27 | Big 4 M&A vs. Lincoln Portfolio Valuations | 6 | 3d |
| +27 | Lazard hirevue | 9 | 5h |
| +26 | Ambitious CC Student trying to break into IB | 13 | 2d |
| +26 | What Differentiates the Best Analysts as AI Improves? | 5 | 1h |
| +19 | Not doing well mentally, how are others doing? | 7 | 4d |
| +17 | Baird getting carved up?? | 6 | 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%)..
Et quia maxime veniam officia nihil ipsa voluptatem. Et dolorem dignissimos quos nisi doloremque. Nisi quia sequi illo quo id ipsa quas.
Ut officiis nobis enim quos recusandae sit. Harum quis nulla cum in quisquam ipsa corporis.
Et nostrum neque magni necessitatibus. Dolorem maiores est rerum in sit. Nulla ut quae ipsa aut nisi. Fugit sunt quis est labore.
Quaerat quasi minima provident dicta dolores quia eos. Inventore error atque cumque. Reprehenderit similique sint magnam.
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...