What happens after the deal closes. How companies operate under leverage, manage their obligations, and respond when the capital structure comes under stress.
Structuring a deal is only half the story. Once debt is in place, management teams face a new reality—covenant constraints, mandatory debt service, and reduced strategic flexibility. How companies navigate these obligations determines whether leverage creates value or destroys it.
This module covers the day-to-day reality of operating under a leveraged capital structure: staying in compliance, making refinancing decisions when markets shift, and recognising when stress is turning into distress.
How leverage shapes operational decisions. Explore cash flow management under mandatory debt service, restricted payment baskets, permitted investment limitations, and how management teams balance growth ambitions against covenant headroom.
View LessonWhen and why companies refinance, and how the process works. Cover maturity wall management, rate environment considerations, repricing transactions, extend-and-amend strategies, and the market conditions that make refinancing possible or painful.
View LessonRecognising the warning signs of credit deterioration. Understand how operational underperformance translates into covenant pressure, liquidity crises, and the escalation from technical default through payment default—and the options available before formal restructuring begins.
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