How would you find out how much debt is needed to fund this reorganization?

So I'm working with a foreign PE firm, they opened a US subsidiary to acquire land in the Permian basin to eventually build a pipeline and perform some E&P. They currently operate through 2 separate subsidiaries, Sub A and Sub B. On an organizational chart it's clear that they're sister companies. I've been made aware that later this year Sub A will become the parent company of Sub B. To do this, Sub B is going to issue some High Yield Senior Notes to repay Sub B's debt and also Sub A's, in turn consolidating and refinancing their debt. My job is to estimate how much debt needs to be raised to complete this reorg. I have separate 12/31/18 audited financial statements for both entities, neither is included in each others financial statement, and knowledge that the debt will be rated Caa.

With just this information, how do I make an educated and technical estimate of how much debt will be raised to fund the refinance and consolidation of these 2 entities?

 

Delectus rerum sed asperiores quos dicta possimus. Non ut odio et eos. Qui minima iusto non et dignissimos possimus. Omnis accusamus eligendi deserunt inventore voluptatibus illo non. Sed fuga tempora quasi deleniti molestiae quibusdam.

Eum dolorem ab asperiores. Quibusdam eum in aliquam amet nam voluptatibus. Quas magnam distinctio omnis sit sint. Earum exercitationem earum rem.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
dosk17's picture
dosk17
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”