Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
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.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
debt maturity schedule
Mubala67 - why is that important? For example, if Stericycle has a $1.0B senior credit facility maturing in September of 2016, and they also have $100.0M private placement notes maturing in April of 2017, what does that mean? Why is that important?
it means in 2016 they will have to pay back the 1bn or refinance it. important because this is how companies go bankrupt - if business declines and cannot pay back or refinance
Mubala67 - thank you. appreciated.
It means the opposite of what Mubala said. A credit facility (particularly an unfunded facility) is a positive from a liquidity perspective - because it is liquidity on demand. That basically says they can borrow up to $1Bn in cash when shit hits the fan - which will hopefully be enough to keep paying the utility bills, paying the vendors, and paying the employees. These credit facilities have saved many companies who were approaching distressed situations in the past.
I would go read more about credit facilities. Every real company has one.
Not necessarily true. Senior credit facilities encompass many types of debt including revolvers, TL's and LOC's. A revolving credit facility (revolver) will have the funded/unfunded component and the corresponding costs and liquidity implications. Term loans are differentiated by the market that the loans will be sold to. Term loan A's are bank loans and term loan B's are sold to institutional investors. There can then be other layers of loans put into the facilities depending on the existing cap structure, use of proceeds, etc.
yeah its $600mm drawn
i dont disagree with you crie just looking at it from other side
Interesting. Okay, makes sense. Do you know of any good books to read on debt in general that should give me a more comprehensive understanding of this stuff i'm going to continually see on these 10-ks and 10-qs?
Dolores occaecati aut qui. Sunt voluptas officiis aut quae sequi. Impedit aliquam et rerum velit maxime. Aliquam sunt sapiente amet quisquam laborum. Magni ipsam ea optio atque quasi eum rerum.
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...