interview Q: HY debt v bank debt, which one would company prefer if
if it's an early stage co. w/ substantial amount of capex?
I would think bank debt because then they wouldn't have the incurrence covenant that may come a long with HY debt of limited capex...
But then I think HY debt because they wouldn't want to pay the amortization of debt if they're early stage w/ alot of capex..
What do you think? Thx
Bank debt because HY is too risky for an early-stage firm with questionable cash flows, especially if it used a lot for CapEx.
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