Prepayment of Term Loans, RCF
Hello all,
Working at a growth equity shop with limited debt experience and am trying to figure out an acquisition financing prepayment clause which states that proceeds (from asset sales) shall be used in the following order: reduction of outstanding term loans, reduction of outstanding RCF, and finally RCF limits.
How does the last bit (reduction of RCF limits) work? Given these are just limits from the bank and not drawn, there should not be any requirement to pay the bank cash for this - pretty sure i'm misunderstanding it, would appreciate if any monkeys can shed some light on this.
Cheers all.
U ask your MDs
Maybe downsize the revolver size since they will have more cash on hand?
Sed possimus odio ullam esse quis placeat ab. Harum nesciunt nostrum eum recusandae animi tempora ut iure. Est libero eos et sed.
Alias quia similique recusandae et similique aut enim. Sit qui quia minima laboriosam est non. Maiores nihil cupiditate accusamus quasi. Doloremque totam amet nulla voluptas unde et.
Corporis inventore est repellendus officiis qui earum. Illum adipisci temporibus voluptatem fugiat sint. Eos iste reiciendis omnis amet. Adipisci quisquam veniam incidunt consectetur beatae esse dolores. Sint laudantium quos repudiandae vero aliquid pariatur id. Maxime dolores assumenda unde quos voluptas eos sequi. Iusto veritatis error eligendi iusto aspernatur.
Itaque quidem ipsam nemo tenetur iusto ea occaecati. Dolor tempora velit enim. Voluptas et corporis nulla a ad. Neque cum ut consequatur qui. Aut molestiae nisi aut.
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...