Leveraged Finance Archives | Private Equity Bro

Certain Funds Standard in Debt Financing

25 September 2026

A seller in a UK or European auction will expect a bidder to prove the money is available at signing,…

Stretch Senior Loans Explained: How They Bridge Senior and Unitranche Debt

29 July 2026

A stretch senior loan is a first-lien senior secured loan that advances more leverage than a conventional bank facility but…

Unitranche vs. Mezzanine Financing: Which Debt Structure Fits Your Deal?

20 July 2026

Unitranche vs mezzanine financing describes the choice between two distinct private debt structures. A unitranche loan is a single secured…

PIK Toggle Notes Explained: How Payment-in-Kind Interest Works

16 July 2026

A PIK toggle note is a debt instrument that gives the issuer a contractual right to pay interest in cash,…

PIK Interest Explained: How Payment-in-Kind Debt Affects Borrowers and Investors

15 July 2026

Payment-in-kind (PIK) interest is interest paid by adding to the outstanding debt balance rather than transferring cash when the coupon…

OID vs. Upfront Fees: How Debt Financing Costs Differ

29 June 2026

Original issue discount, or OID, is a debt pricing mechanism where a lender funds less than the stated principal at…

Why the Sponsor-Lender Relationship Doesn’t End at Close

25 June 2026

This is the third in a three-part series on the private credit deal cycle. Part one covers bookbuilding. Part two…

How to Navigate the Term Sheet Process in Private Credit

13 June 2026

This article explains how private equity sponsors should manage the private credit term sheet process, compare multiple lender proposals, negotiate…

Original Issue Discount (OID): How It Works in Debt Financing

9 June 2026

Original issue discount, or OID, is the difference between the stated principal of a debt instrument and the price at…

Acquisition Financing Explained: How Buyers Fund M&A Deals

20 May 2026

Acquisition financing is the full capital stack a buyer assembles to pay purchase consideration, refinance target debt, cover transaction fees,…

Maintenance Covenant vs. Incurrence Covenant: What’s the Difference?

4 May 2026

A maintenance covenant is a recurring financial test, usually quarterly, that a borrower must pass whether or not it has…

OID in Private Credit: What Original Issue Discount Means

17 April 2026

Original issue discount, or OID, is the difference between the price at which a loan or bond is issued and…

Asset-Based Lending vs. Cash Flow Lending: What’s the Difference?

14 April 2026

Asset-based lending, or ABL, advances money against identifiable collateral such as receivables, inventory, and equipment, whose value can be monitored…

Margin Ratchet Explained: How Pricing Adjusts in Leveraged Loans

10 April 2026

A margin ratchet is a pricing mechanism embedded in a leveraged loan credit agreement that automatically adjusts the borrower’s interest…

How Market Sounding Works in M&A Deal Preparation

19 March 2026

Market sounding is the controlled process of testing buyer, lender, or syndication appetite before a formal transaction launch. It sits…

Junk Bonds in Private Equity Financing: What Are They?

17 March 2026

A junk bond in private equity financing is a non-investment-grade corporate debt instrument, rated below BBB- by S&P or Fitch,…

Leverageable Assets in Private Equity: Their Strategic Role Explained

16 March 2026

Leverageable assets are cash-flowing or monetizable assets that can support third-party debt at the portfolio company, holdco, or fund-adjacent level.…

Partial Recourse Guarantees in Private Equity Financing: Key Terms and Risks

25 February 2026

A partial recourse guarantee is a contractual undertaking by a guarantor to satisfy specified liabilities of a borrower only to…

Staple Financing in M&A: How It Works and When Sellers Use It

20 February 2026

Staple financing is seller-arranged acquisition debt offered to all bidders in an M&A process on substantially the same terms. The…

Reasonable Best Efforts in M&A: What the Clause Requires and Risks

19 February 2026

“Reasonable best efforts” is an M&A covenant that sits between a pure “efforts” promise and an absolute obligation. It requires…

Term Loans in Private Equity Financing: Structure, Security, and Key Uses

29 January 2026

A term loan is a committed loan facility with a fixed maturity and scheduled repayment that forms the largest debt…

Change of Control Clauses in PE Financing: Key Triggers, Risks, and Protections

28 January 2026

A change-of-control clause links ownership shifts to specific creditor rights, typically a put option at par or above and sometimes…

Joint Due Diligence Agreements: How Buyers Share Information and Reduce Costs

31 December 2025

A joint due diligence agreement allows multiple bidders or lenders to share due diligence work and split advisor costs while…

Cross-Acceleration Clauses in PE Loans: How a Default Spreads Across Debt

22 December 2025

Cross-acceleration clauses determine whether a payment default on one debt instrument triggers acceleration rights across an entire capital structure. For…

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