R – Leverest

(Owner) Roll Over

Daniel Högel — Tue, 26 Apr 2022 18:41:34 +0000

Feature in an acquisition where existing equity owners such as high-ranking managers or founders, partially or fully, roll their equity stake into the new capital structure used to acquire the target company. This common feature is very appealing to Private Equity investors since it increases the alignment of the sponsor’s and founder’s interests.

Recapitalization

Daniel Högel — Fri, 25 Mar 2022 13:52:28 +0000

Optimization of capital structure by exchanging debt for equity. Usually, this kind of transaction is performed to allow an investor to pay out a dividend after a successful deleveraging period by the operating company.

Refinancing

Daniel Högel — Fri, 25 Mar 2022 13:52:53 +0000

Replace companies existing debt through a new financing structure from new or the same lending parties.

Revolving Credit Facility (“RCF”)

Daniel Högel — Fri, 25 Mar 2022 13:53:25 +0000

Pre-arranged credit line which can be borrowed, repaid and reborrowed at any time prior to maturity, at the borrower’s discretion.

Right Of First Refusal (“ROFR”)

Daniel Högel — Tue, 26 Apr 2022 18:58:41 +0000

Contractual right which prioritizes a lender to participate in an economic transaction (e.g. commitment of a new loan facility) before third parties can close the transaction.