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Can also just be a sign credit markets are way more favorable than time of original deal, or that the portco has way outperformed its lender case and thus has a significant amount of leverage capacity that could be use to juice returns regardless of intended hold
Basically, you are sitting on an asset that has done well and has capacity for more debt, but can't deploy much cash in a responsible way to grow. Therefore, better to pull cash out of the business and reinvest elsewhere.
I think a certain level of debt also keeps the team running the company on their toes/disciplined. There's a lot written on the level of discipline you get with a healthy amount of debt...opinions may vary.
Reminder to self: I’ll post on this after dinner, sending kids to bed. A couple examples to illustrate if I’m up to it would give u the answer u need. Good answers above tho on leverage capacity N stuff
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