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a. Where do bank vs bonds fall in this cap structure diagram (unclear)
b. Senior debt
i. Even though it has a 1st or 2nd lien on assets, is it always considered “unsecured” and not “secured”? why – is it because Senior Secured Debt is typically
placed in SPV vehicles?
ii. Does this category include bank debt only (eg, 1st and 2nd lien term loans, etc), not including bonds
2. Slide 34
a. Under Distressed Value boxes, if TEV = 300, shouldn’t the entire 300 go to pay the Senior Debt outstanding since it has seniority over Sub Debt (shouldn’t Senior Debt
be paid in full before moving on to the next claimant)? Why is the 300 TEV split 250 to Senior Debt and 50 to Sub debt?
3. Slide 36
a. try to tie to slide 29 – please help me place the 5 capital structure security categories from slide 29 into slide 36 buckets (where does it fall under Secured Bank
Claims, Secured Asset Financing, Bondholders, etc)
b. Why is Secured Bank Claims senior to “business operations” like Secured Asset Financing and Trade Claims, but Bondholders and Equity subordinate to these
“business operations” Read More