Leveraged finance interview - origination

Hi !

I have a LevFi origination job interview for experienced hire coming up this Friday. I’m currently doing LevFi but have no experience in origination.

This role works closely with financial sponsors to structure and execute credit facilities.

I would be tasked to come up with term sheets, pitch books, pricing proposals and so on.

1) What’s the thought process like when negotiating with the PE firms on the terms and conditions?

2) How do you determine the structure of the credit facility (i.e. term loan/amortising term loan/ tenor of loan etc) that would suit the sponsor the most?

3) How do i come up with a pricing proposal? How do you determine the pricing apart from the credit profile of the target company and investors’ appetite?

Thank you.

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