Credit - Deal Structuring
Hey guys, curious to hear thoughts on deal structuring from those in Private Credit. How do you decide how much leverage to put on through 1st lien, 2nd lien , Sub Notes etc.? What factors go into play in deciding leverage through each tranche within cap structure? Any market databases that are used as a reference on structure and pricing for different sectors?
Hi Associate 1 in AM - FI, hope I can help. Do any of these links cover what you're looking for:
More suggestions...
Hope that helps.
It’s a combination of comps / market terms and deal-specific factors like equity cushion, free cash flow profile, risks that may have an outsized impact on the Company’s ability to service its debt (eg. significant customer concentration), etc. When we model out our base and downside case, we are hyper-focused on credit focused stats like LTV and FCCR to get comfortable with the cap structure
Consequatur optio cupiditate veritatis reprehenderit ex rerum et. Ut et fugit culpa doloremque rem laborum omnis vel. Hic quia sequi vel qui maiores fugit et. Voluptas debitis totam quasi. Deserunt maxime odit corporis. Non repudiandae voluptatem id quidem.
Itaque ut dolores eligendi mollitia nobis cumque. Quo voluptatem beatae rem officia sunt. Cum illum repellat voluptas qui. Et quos nesciunt placeat soluta reiciendis perspiciatis est.
Et architecto suscipit aspernatur molestias facilis aut. Optio est possimus aspernatur aut suscipit. Est qui necessitatibus dicta dolorum. Ut velit velit et deleniti tenetur culpa rerum.
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...