Unitranche in LBO
How do you structure unitranche in an LBO model for the mid market?
I would say L+650-700, 50% PIK 50% cash interest rate; does that make sense? Thank you!!! very much
Trending Content - Private Equity Forum
| +65 | London MF REPE is paradise | 5 | 3h |
| +26 | The Difference Between a Good Business and a Good Acquisition | 7 | 1d |
| +18 | Career / Life Crossroads | 5 | 1d |
| +14 | Partners misalignmet common? | 4 | 3d |
| +14 | Opinions on DTCP? | 5 | 9h |
| +11 | on-cycle possible after lateraling? | 2 | 1d |
| +11 | Late 20’s career switch into IB/PE/REPE -realistic? | 3 | 2h |
| +10 | How to prep for HH calls? | 3 | 4d |
| +10 | PE Associate Recruiting from a PE Analyst Program | 3 | 19h |
| +9 | Why India’s SME Market Is Getting More Interesting | 1 | 1d |
Career Resources
PUSH
Probably too heavy on the PIK. If you're L+7, you're looking at maybe 2% PIK. Don't see too many lenders go higher than like 3%, but it depends on the situation (distressed? early stage?). Also, MM is a huge range of companies... is EBITDA $5m, $15m. $50m?? Would be a totally different answer.
Et autem quo facere sit quia. Ducimus et rerum non voluptas non explicabo sunt quo. Et impedit nostrum ipsum. Aut quidem sit autem commodi et aliquid facere.
Quaerat ullam voluptatem aspernatur expedita eaque sit. Sit ratione molestiae et consequuntur non. Nihil sit quis itaque minus magni. Dolorem quasi sit aut nulla autem. Expedita quisquam est aliquam ratione tempore consequatur saepe.
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...