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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 43 of 50

Sort each covenant into whether it is a positive (do) or negative (do not) undertaking 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

7

Drag each statement into the correct group.

Make all payments when due

Maintain corporate status, preserve and insure assets, and pay taxes promptly

Provide regular financial information

Incur additional indebtedness (unless permitted)

Pay dividends

Acquire or dispose of businesses or transfer assets

Comply with the financial covenants

Positive covenant (Do)

0

Drop matching statements here.

Drop statements here

Negative covenant (Do not)

0

Drop matching statements here.

Drop statements here