Best Strategies for Renegotiating Credit Agreements for PE-Backed Companies
Atlanta, GA — As we begin to observe indicators hinting at a softer economic climate, common trends are emerging, impacting company cash flow across many sectors, including labor force challenges and supply chain irregularities, combined with rising interest rates approximately doubling cash interest costs for borrowers linked to floating rates.
For sponsors faced with asking internal investment committees to deploy equity dollars into struggling investments, the good news is that there are amendment alternatives waiting to be explored. As increased economic softness causes a prevalence of covenant breaches, it is important for borrowers and private equity firms to thoughtfully plan ahead to maximize the range of options for challenging situations.
In the article published by Mergers & Acquisitions, Configure Director Matt Guill covers and explores strategies for renegotiating credit agreements for private equity-backed companies. Read the full article here.