The Prudential Capital Group Guide to Senior Debt Capital

11.01.18

Just as it sounds, senior debt capital assumes priority over other forms of capital and is generally repaid first. It can be secured or unsecured, asset-based or cash flow-based, depending on the size and strength of a company. The term (short or long) for senior debt capital will be dictated based on the nature of the funding need and the company’s credit quality. Senior debt capital is also available from multiple lending markets.

For most companies that take on leverage, the first, and often only, debt they will raise is senior debt capital. If a company plans to substantially increase in scale and is in need of external capital, utilizing senior debt capital is the most affordable, flexible and effective way for them to improve the growth rate of their company, while maintaining control. 

In addition to being the most cost-effective type of capital, companies often choose senior debt for the variety of advantages it offers over other forms of capital. For example, senior debt capital is versatile; it can be used for short-term purposes, such as day-to-day operations, or it can be used for longer-term purposes, like acquisitions or significant liquidity events.

Additionally, senior debt covenants may feel onerous at times, but they can actually be useful to both the lender and borrower, such as helping a company detect financial challenges before a more serious issue emerges.

With The Prudential Capital Group Guide to Senior Debt Capital in hand, you will be equipped with the information needed to determine how senior debt capital might add value to your business.

More than Meets the Eye, The Prudential Capital Group Guide to Senior Debt Capital  

We understand that many CEOs and CFOs may already be familiar with senior debt capital, therefore, our guide highlights certain aspects you may not know, such as the variety of options in which senior debt capital can be sourced, structured and secured.

What Else is Inside The Prudential Capital Group Guide to Senior Debt Capital?

  • Uses for Senior Debt Capital
  • The Benefits of Senior Debt Capital
  • Using Senior Debt Capital for Strategic Growth
  • Senior Debt Covenants: What to Expect

Should you be researching your capital options, preparing to source senior debt capital or looking to optimize the senior debt you already use, The Prudential Capital Group Guide to Senior Debt Capital is your one-stop resource.

 


Interested? We would be happy to discuss how senior debt capital could work for you.

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