Why would a firm prefer to roll over debt in an LBO

Why would a firm prefer to roll over debt in an LBO? It was mentioned in a prep document, but I don't see how this would have any affect on returns, you'd have to just raise that debt again?

2 Comments
 

If you can roll existing debt at a lower rate than you can get financing in the market you would do it (also would save financing expenses). Usually not an option as change-of-control frequently accelerated maturity.

 

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