Strong Debt Market Improves Prospects For Leveraged Transactions

Michael FlockIndustry Insights Leave a Comment

Leveraged TransactionsSince 2004 senior debt markets have loosened substantially. Faced with competitive pressures, including new senior lending sources, traditional lenders are embracing more liberal debt coverage multiples and covenants.

Aggressive cash flow and stretch lending is helping to facilitate increased flexibility on senior deals. Significant amounts of junior debt capital, as well as new debt products, further improve prospects for leveraged transactions.

More aggressive lending and relatively low interest rates are facilitating higher debt capital components and higher total enterprise valuations in leveraged transactions.

Combined with the liberalization of the senior debt markets, equity contributions to leveraged buyout transactions remain relatively high, which is helping to push acquisition multiples higher.

About FLOCK Specialty Finance:

FLOCK Specialty Finance is dedicated to alternative funding in a variety of specialty finance segments. FLOCK’s mission is to provide clients with capital and expertise for the purchase of both charged off debt portfolios as well as for the financing of subprime consumer obligations. FLOCK has funded over 600 portfolios since 2013.

FLOCK believes its funding is “More Than a Transaction”. FLOCK’s proprietary financing structure provides growth-minded clients with a competitive advantage in multiple asset classes. Founded in 2007, FLOCK is headquartered in Atlanta, GA. For additional information, please call: 770-644-0850 or contact us today.

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