Current LBO Debt Terms
anyone got any ideas on what to assume in the current market for standard LBO terms? mainly just for interview modelling test purposes.
5.5x total, 4.0 senior make sense? in terms of % interest?
anyone got any ideas on what to assume in the current market for standard LBO terms? mainly just for interview modelling test purposes.
5.5x total, 4.0 senior make sense? in terms of % interest?
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Completely depends on the size of the deal, size of the Company, industry, multiple paid, etc., but for practice purposes I would just do 9x EV and 5x leverage (4x 1st lien / 1x sub, mezz or 2nd lien). Senior at L+550 bps with 2nd lien (or whatever junior debt) at L+850 (mezzanine ~100-150 bps wide of that so around 10%-11%).
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