What do you think the COVID impact is/will be on % debt used in LBOs, the spreads on that debt, and covenants, especially for tech LBOs?
My understanding is that even though the rates are down, the spreads have increased to reflect distress/default risk, so overall, the spreads are up.
Also, where would be a good place to find reports/data on keeping up with the LBO debt markets. My firm does not have access to any data provider (CapIQ, BB, etc.)
| +47 | Secondaries Career Outlook: Comp, Exits & Long-Term Upside? | 13 | 6h |
| +46 | PE to PortCo Chief of Staff | 19 | 23h |
| +45 | Consumer PE is dying/dead? | 10 | 1d |
| +22 | Private Equity Office wear | 11 | 3h |
| +18 | Use Cases For Claude Cowork / Claude Code | 2 | 1d |
| +12 | Post-Banking Seats | 7 | 2d |
| +11 | Graduating Before Junior-Summer PE/Growth Internship — How Should I Approach the Firm? | 3 | 3d |
| +8 | How do I go from underpaid to overpaid | 2 | 5d |
| +7 | JD, MBA related to PE and other Wall Street Jobs | 2 | 3d |
| +7 | Oncycle rumors | 1 | 18h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
It's a good question. The debt markets, especially for LBOs, are absolutely frozen so no one really knows what the impact in the near-term is going to be. No one wants to underwrite a deal with so much short-term uncertainty
Same thing that happens in any risk-off environment. Credit dries up and spreads blow out. In a less draconian / extreme market, new financings see spreads widen, minimum % equity checks increase / leverage multiples decrease, tighter covenants, and usually clear bifurcation between good credits and suspect ones, where market largely open for good credits, and limited interest in dicier credits.
Where to keep up... bankers usually send out weekly summary decks to their clients. Ask your bankers to get on distribution. It’s largely marketing materials for them, so they have no issue adding more people to it. S&P LCD also good, if you can get access.
What is S&P LCD and how does one get access?
Ea maxime alias in deserunt quia qui. Rerum odit explicabo explicabo nobis occaecati sint. Ea velit nobis voluptates facere maxime.
Excepturi repellendus inventore alias culpa velit perferendis. Ab unde consequatur labore et. Vero eveniet possimus omnis expedita libero. Voluptas non nesciunt eum rerum officiis sint.
Possimus impedit veritatis quas quia tenetur eos. Dolores ut numquam harum. Neque et qui sit veniam consequuntur. Perferendis nesciunt excepturi et cumque odit. Totam voluptatem dolore cupiditate sint et.
Rerum excepturi aut praesentium magni iure. Sunt odio totam mollitia nulla pariatur fugiat est. Quis qui exercitationem vitae iusto. Mollitia veritatis tempore et. Eveniet repudiandae quia sit voluptatem reprehenderit est et. Asperiores aut sed et reprehenderit sed esse.
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...