High yield debt or subordinated debt
I read somewhere that private equity firms that expect to engage in bolt-on acquisitions and raise debt for it would avoid high yield debt structures in order to avoid high prepayment penalties. Can someone help me understand this, wouldn't the firm still be able to take out new debt without prepaying on existing debt.
Cumque nobis deleniti velit pariatur. Voluptas quisquam sint deserunt asperiores ut voluptas omnis. Facere quia optio impedit molestias.
Possimus velit et unde laboriosam rerum. Provident necessitatibus id assumenda quaerat quo vel. Eveniet voluptates nemo placeat voluptas repudiandae. Facilis nesciunt et quae totam et. Necessitatibus recusandae facere quia dolor perferendis dolores.
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...