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Private Equity

Lecture 5-6: Deal Structuring (Financing)

Comprehensive exam-prep quiz covering leveraged finance: sources and uses of funds, management incentives and equity structuring, the leverage effect on EV and equity, key factors determining leverage, LBO debt structures, loan underwriting options, and loan agreements.

Question 41 of 50

Sort each item into the correct lender protection mechanism in a loan agreement.

Drag each statement into the correct group.

Sort every statement: place all cards into a group, then check your answer.

Statements

5

Drag each statement into the correct group.

Preconditions (corporate authorisations, KYC, DD reports, SPA) that must be satisfied before the borrower can draw down

Contractually specified events that allow lenders to accelerate repayment of the debt

Statements by which the borrower gives assurances the lenders rely on (e.g. no insolvency, no misleading information)

Agreements by the borrower to do, or not do, certain actions; a breach is an event of default

Charges and pledges over important assets giving lenders a last source of repayment in distress

Conditions Precedent

0

Drop matching statements here.

Drop statements here

Representations & Warranties

0

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Undertakings & Covenants

0

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Events of Default

0

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Drop statements here

Security

0

Drop matching statements here.

Drop statements here