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)
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Couple questions:
What is the FCF? Does the company have any A/R to lend against? Any cross-collateralization opportunities?
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