Leverage for LMM Software PE
For a software company with high recurring revenues, what level of leverage will be considered investment-grade?
I am trying to figure out what level of debt can a company (broadly $5-$25mn revenues) finance from bank loans and high-yielding instruments, and what would be the best way to structure them (covenants etc)
BUMP
Couple questions:
What is the FCF? Does the company have any A/R to lend against? Any cross-collateralization opportunities?
Molestiae recusandae sunt amet. Facilis optio repudiandae officia quis optio dolor. Consequatur fugiat aspernatur nihil quis repellat. Dolorem tenetur minus ad et et similique placeat.
Iusto fugiat totam sapiente qui non qui deserunt. Aperiam blanditiis molestiae illum. Magni et accusantium qui. Sunt veritatis ullam expedita earum.
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...