Latest / Connected With Latham
Episode 40 – PE Views: Could PE Benefit From the Universal Adoption of "Super Senior" RCFs in Leveraged Financings?
Undrawn revolving credit facilities (RCFs) serve as essential parachutes to private equity. They are a backup in the event of mismatches in the working capital cycle, they provide comfort for a rainy day, and they preserve swift access to deal-making when other financing sources are unavailable, or less easily accessible. The COVID-19 pandemic clearly proved the importance of undrawn RCFs to private equity. At the onset of the pandemic, credit markets gummed up and businesses worldwide grappled with evaporating liquidity, while leveraged companies dashed for cash and drew revolving lines. In…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.