Posts by: WST Expert 1
RE: Using different debt securities to finance an LBO
Term loans (aka bank debt) are less expensive for a Company because they require a lower interest rate. However, they require regular mandatory paydowns, which decreases the Company’s available cash. Senior notes and senior discount notes are advantageous in that you defer paying them back until m... Read More
Term loans (aka bank debt) are less expensive for a Company because they require a lower interest rate. However, they require regular mandatory paydowns, which decreases the Company’s available cash. Senior notes and senior discount notes are advantageous in that you defer paying them back until m... Read More
Re: IRR decline
Here's a short summary of our discussion. The exit multiples are hypothetical. Rationale for Trends with Different Exit Multiples: – 8x: you are selling in Y1 at a much lower multiple than you bought in (huge neg). As you de-lever, you build equity quickly at the beginning, net debt pay down in Y... Read More
Here's a short summary of our discussion. The exit multiples are hypothetical. Rationale for Trends with Different Exit Multiples: – 8x: you are selling in Y1 at a much lower multiple than you bought in (huge neg). As you de-lever, you build equity quickly at the beginning, net debt pay down in Y... Read More
High yield bonds do not necessarily mean bankruptcy is imminent. If bankruptcy is a possibility, then yes, you need the Distressed Modeling course (fulcrum, etc) and of course Valuation, sum of the parts, liquidation, asset sale, etc. Our Covenants & Credit Agreements course is not yet availab... High yield bonds do not necessarily mean bankruptcy is imminent. If bankruptcy is a possibility, then yes, you need the Distressed Modeling course (fulcrum, etc) and of course Valuation, sum of the parts, liquidation, asset sale, etc.
Our Covenants & Credit Agreements course is not yet available online, but there is a live class coming up soon on 10/23/2013:
http://www.wallst-training.com/nyc1day/index.html Read More