May I ask a quick question on debt for LBO please? I'm doing some practices and would really appreciate your guidance!
Assuming I'm doing an LBO of a public company, levering it up to 5x EBITDA...there are a few things I'm confused about the debt component:
1) How much revolver do I assume I can get? Is that linked to EBITDA?
2) How do I think about what kind of tranches of debt I can get? I know total leverage is usually 4-6, but how do I know how to divided it between Term Loan, bond, 1st lien, 2nd lien etc? How do I know what amortization schedule and interest I can get in this market now? Would appreciate your guidance!