Calculate debt capacity

Hi guys,

Quick questions for the pros ;) are there any good resources to learn about the various debt instruments and how to model them in a M&A / LBO context? also: do you guys know how to calculate debt capacity for a company?

We are offered a step down unitranche over a period of 7 years in USD. It is basically a bullet loan with step down interest margin depending on our Ebitda leverage. I would very much like to check how much we can actually afford given our BP and model the whole things so any info would be really appreciated :)

Thanks!

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“Thank you, Ryan - a very helpful session, especially for the PE perspective. We worked through my behavioural stories, and he showed me how to reshape them into one cohesive story of about 5 minutes, with more emphasis on the numbers and on my sell-side and buy-side roles. His tricky question on switching jobs was especially useful - it covers a likely interview question - and so was the buy-side vs sell-side discussion. On the technical side, we covered how project finance debt is sized in practice, with merchant risk, which was a good contrast to the availability-payment structures common in the GCC. Thanks again - looking forward to the next session.”

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Calculate debt capacity

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Calculate debt capacity

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