Pitching Leveraged Dividend Recaps to Institutional Debt Underwriters
Pitching a $100M dividend recapitalization requires proving to debt lenders that portfolio free cash flow covers 4.5x total leverage with ample covenant headroom.
Amit KasliwalCEO & Founder, Dehurdle
December 11, 20224 min read
The Free Cash Flow Debt Service Defense
Recommended Spoken Script
"With EBITDA growing 28% year-over-year to $26M and a 94% recurring revenue retention rate, our pro-forma 4.2x debt leverage leaves a comfortable 35% cash flow cushion above our 2.5x fixed-charge coverage covenant, making this dividend recapitalization exceptionally secure for senior debt holders."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice debt recapitalization pitches in Dehurdle.