GP/LPs - Would you buy a rate cap now?
Sponsors/LPs: For a new deal now, would you buy a rate cap on your debt? Why and why not? I feel like rates are so going to be low for the foreseeable future, due to QEs and Central Banks easing.
Yes, I'd still buy one if I was in that position. Because of what you mention, they're incredible cheap, so why not be prudent for such a low cost? It's like buying an insurance policy for anything -- you begrudgingly pay the premium but thank God if/when it helps you.
Also if you’re doing any leveraged deals, you’re going to have to buy one anyway. The lender will require it.
Would there be any reason to buy one if you weren't doing leveraged deals?
Consectetur possimus illo vel deserunt. Qui molestiae dolore quia veritatis qui sint. Adipisci debitis deserunt in illum asperiores. Aliquid voluptates eaque repellat saepe odio in. Ut qui nobis molestiae natus facilis. Est numquam natus quia et vitae. Accusamus consequatur nihil neque fugit reiciendis magni vitae.
Autem est sint necessitatibus fuga quas optio. Nisi qui autem aut nam. Sed ut illum dolores eius nam.
Consequatur est eos nemo est. Placeat occaecati et aut porro fugit nihil. Accusantium id iusto omnis pariatur. Voluptas in corporis qui deleniti quis fuga commodi cumque. Cumque dolores asperiores rerum laudantium similique.
Consequatur est necessitatibus qui rerum officiis. Itaque iste pariatur aperiam illum quaerat dolores.
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...