Podcast
Questions and Answers
What is the purpose of a revolver in the context of the text?
What is the purpose of a revolver in the context of the text?
- To have the flexibility to borrow small amounts as needed (correct)
- To take out a large sum of money all at once
- To manage liquidity by investing in different funds
- To repay the term loan in smaller installments
What does the term 'forbearance with the lender' indicate about the company's financial situation?
What does the term 'forbearance with the lender' indicate about the company's financial situation?
- The company had an excellent credit rating and didn't need to borrow
- The company was experiencing financial difficulty and needed temporary relief from loan obligations (correct)
- The company was planning to secure a new loan for expansion purposes
- The company had already repaid all its loans and was in a strong cash position
What is the CFO's primary concern when mentioning 'liquidity' in the context of the text?
What is the CFO's primary concern when mentioning 'liquidity' in the context of the text?
- Ensuring that the company has a large amount of cash reserves (correct)
- Maximizing the returns on the company's investment portfolio
- Developing a strategy to attract more venture capital for expansion
- Paying off all outstanding debts to improve the company's credit rating
What does the CFO mean when mentioning 'debt service payment' in relation to the term loan?
What does the CFO mean when mentioning 'debt service payment' in relation to the term loan?
What is the purpose of having a DDT L (delayed draw term loan) sitting there, according to the speaker?
What is the purpose of having a DDT L (delayed draw term loan) sitting there, according to the speaker?
How does the speaker describe their approach to treating shareholders and debt holders?
How does the speaker describe their approach to treating shareholders and debt holders?
What aspect of the business does the speaker highlight as important regarding the monthly and quarterly meetings with creditors?
What aspect of the business does the speaker highlight as important regarding the monthly and quarterly meetings with creditors?
According to the speaker, what makes the lenders and board happy?
According to the speaker, what makes the lenders and board happy?
What important role do creditors play in the private company's annual audit process, according to the speaker?
What important role do creditors play in the private company's annual audit process, according to the speaker?
How does the speaker describe their experience of working with creditors during challenging times?
How does the speaker describe their experience of working with creditors during challenging times?
