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Re: Belron’s $455 Million Term Loan Takes Shape

anyone notice who the 3 major shareholders in Belron are? LOL

Re: Belron’s $455 Million Term Loan Takes Shape

Profit is there. added leverage to pay investors and maintain operating cash flow... PE always gets theirs.

Re: Belron’s $455 Million Term Loan Takes Shape

Pay attention to EBITDA forecast.. then you could speculate risk / investment.. focus on total debt and terms or repayment aggression.. Belron is at now at 4.9% EBITDA with an aggressive forecast post loan.

Benefits of the EBITDA Margin
Calculating the EBITDA margin allows people to compare companies of different sizes in different industries because it breaks down operating profit as a percentage of revenue. This means that an investor, owner or analyst can understand how much operating cash is generated for each dollar of revenue earned and use the margin as a comparative benchmark.

Considering the example above, if a small company earned $125,000 in annual revenue and had an EBITDA margin of 12%, its performance can be compared with a larger company that earned higher total revenue. If the larger company earned $1,250,000 in annual revenue but had an EBITDA margin of 5%, it becomes clear that the smaller company operates more efficiently as a way to maximize profitability while the larger company has likely decided to focus on volume growth in order to increase its bottom line. This allows people to make informed business and investment decisions.


Drawbacks of the EBITDA Margin
The exclusion of debt has its drawbacks when measuring the performance of a company. For this reason, some companies deceptively use the EBITDA margin as a way to increase the perception of its financial performance. For example, companies with high debt shouldn't be measured using the EBITDA margin because the larger mix of debt-to-equity increases interest payments, which should be included in the analysis of a company with high debt.

Re: Belron’s $455 Million Term Loan Takes Shape

S&P 500 has typically averaged EBITDA from 11 to 14 over the last few years.

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