Learn / Debt and financing structures Go to Overview 1. The capital stack from the sponsor's seat 2. Pricing debt: spread, floor, OID, and call protection, Pro 3. Credit stats and how much debt a deal gets, Pro 4. Covenants from the sponsor's chair, Pro 5. Term loan B, unitranche, bonds, or holdco PIK, Pro 6. Seller notes, rollover, earnouts, and preferred equity, Pro 7. Refinancing, recaps, and the credit cycle, Pro Flashcards, 0 of 16 reviewed Basic quiz Advanced quiz Terms Debt and financing structures
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0 of 16 cards How a sponsor finances a buyout: who lends and why, how debt is priced, how much a deal can carry, covenants, choosing between a term loan, a unitranche, and bonds, seller paper and preferred equity, and what happens to the debt during the hold.
A Advanced4 lessons 4 Covenants from the sponsor's chair Maintenance and incurrence covenants, covenant-lite loans, how sponsors negotiate cushion and EBITDA definitions, and what actually happens on a breach. 11 min 5 Term loan B, unitranche, bonds, or holdco PIK The four common ways to finance a buyout, what each costs, and the deal facts that make a sponsor choose one. 11 min 6 Seller notes, rollover, earnouts, and preferred equity The financing that does not come from a lender, and how each piece changes the common equity's return. 11 min 7 Refinancing, recaps, and the credit cycle What sponsors do with a portfolio company's debt during the hold, and how credit conditions decide how much leverage a deal gets in the first place. 10 min Q Advanced quiz 10 questions, 80% passes