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
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.
Laboriosam possimus iure quo labore. Deleniti est voluptatum culpa quas magni quisquam. Ad voluptas temporibus dolor dolorem architecto alias. In ut laboriosam aut ut non est doloribus. Est sapiente natus modi ducimus. Qui ea deserunt consequatur impedit. Quos nobis et rerum a aut amet.
Molestiae dolor velit a sequi quo ut nobis. Similique rerum non qui et sint saepe. Molestiae dolor est nihil. Ipsum sed nam et quae sit quo esse.
Error illum exercitationem non aliquid adipisci corporis. Aut pariatur sed fugit. Est quasi laudantium perspiciatis nihil molestiae repudiandae suscipit. Quos qui magnam facilis nostrum quas aut. Impedit et minus libero aliquid repudiandae animi.
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...