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Leveraged Finance

Leveraged Finance for Acquisitions & Buyouts

TULA Capital structures comprehensive leveraged finance packages from $25M-$500M, combining senior debt, unitranche, mezzanine, and equity capital for leveraged buyouts, platform acquisitions, and growth transactions. We deliver optimal leverage, pricing, and covenant flexibility.

$4.2B+
Leveraged Transactions
95+
LBO/Acquisition Deals
5.5x
Avg Debt Multiple
45-60
Days to Close

Why TULA for Leveraged Finance?

Leveraged transactions demand sophisticated capital structuring and coordination across multiple lender types. TULA's expertise ensures you maximize leverage while minimizing cost of capital and preserving operational flexibility.

Capital Stack Optimization

We architect optimal debt structures combining senior, stretch senior, unitranche, and mezzanine capital. Our modeling identifies the mix that maximizes leverage while minimizing weighted average cost of capital and covenant constraints.

  • Multi-tranche structure expertise
  • Cost of capital optimization
  • Intercreditor negotiation mastery

Comprehensive Lender Network

Direct relationships with 100+ leveraged finance providers—banks, direct lenders, BDCs, and mezzanine funds. We know which lenders compete for specific deal profiles and how to position transactions for maximum interest and competitive tension.

  • Bank and non-bank lender access
  • Simultaneous senior/mezzanine processes
  • Priority deal flow status

Deal Execution Excellence

We've closed 95+ leveraged transactions totaling $4.2B+. Our process management prevents the coordination failures and timing slips that commonly derail complex financings. We deliver certain, efficient closings under compressed timelines.

  • Proven execution track record
  • Multi-lender coordination expertise
  • Proactive issue resolution

Our Process

Leveraged finance transactions require meticulous structuring and coordination. Our process ensures optimal leverage, competitive pricing, and certain execution.

1

Capital Structure Design (3-5 days)

We model multiple capital structures analyzing leverage capacity, covenant headroom, and cost of capital across scenarios. Our output defines optimal debt quantum, mix of senior and junior capital, and target pricing for each tranche.

Output: Capital structure recommendations, leverage analysis, return sensitivities

2

Lender Targeting & Materials (1-2 weeks)

We create comprehensive financing package—CIM, detailed financial model, management presentation, and lender-specific materials. Simultaneously, we identify 10-15 best-fit lenders across senior, unitranche, and mezzanine providers based on industry, size, and structure preferences.

Output: Complete deal package, targeted lender list by capital type, outreach strategy

3

Competitive Market Process (3-5 weeks)

We launch simultaneous processes across capital tranches, managing communications, coordinating management presentations, and maintaining momentum. Our approach creates competitive tension while preserving confidentiality and managing sponsor time efficiently.

Output: Multiple term sheets per tranche, detailed comparison analysis, negotiation roadmap

4

Term Negotiation & Optimization (2-3 weeks)

We negotiate all terms across capital sources—pricing, leverage multiples, covenant packages, prepayment flexibility, and intercreditor dynamics. Our database of 200+ leveraged deals informs every discussion, ensuring you capture market-best terms.

Output: Executed term sheets across capital stack, intercreditor framework agreement

5

Due Diligence Coordination (4-6 weeks)

We manage parallel diligence processes across multiple lender types, coordinate with legal and accounting advisors, and proactively address issues. Our experience prevents the coordination failures that commonly delay leveraged closings.

Output: Completed diligence across all tranches, negotiated credit agreements ready for closing

6

Closing & Post-Close Support

We coordinate simultaneous closings across capital sources, manage funding mechanics, and ensure smooth transaction completion. Post-close, we remain engaged for amendments, add-on acquisitions, dividend recaps, and refinancings.

Output: Funded transaction, ongoing advisory relationship for future capital needs

What We Finance

TULA structures leveraged finance packages for private equity-backed and strategic acquisitions across the middle market.

Transaction Size

$25M - $100M
Lower middle market LBOs and platform acquisitions
$100M - $250M
Core middle market buyouts and carve-outs
$250M+
Upper middle market and syndicated transactions

Common Structures

Senior + Mezzanine (traditional structure)
Unitranche (single-lender solution)
Senior + Subordinated debt
Stretch senior facilities
Multi-tranche syndicated deals

Typical Leverage Profile

Total Leverage
4.5x - 6.5x EBITDA
Senior Debt
3.0x - 4.5x EBITDA
Junior Capital
1.0x - 2.5x EBITDA
Equity
35-45% of TEV

Recent Transactions

Representative leveraged finance transactions closed by TULA Capital.

$275M
Healthcare Services LBO

$175M senior + $100M mezzanine for PE-backed buyout. Negotiated 5.8x total leverage at L+525bps / 12% PIK respectively. Covenant-lite structure with accordion for bolt-ons.

Closed in 58 days
$140M
Manufacturing Platform Acquisition

Unitranche structure providing simplicity and speed for sponsor. Achieved 5.2x leverage at L+650bps all-in, 30% lower cost than separate senior/sub financing would have delivered.

Closed in 45 days
$425M
Business Services Carve-Out

Complex structure for corporate carve-out: $300M senior, $85M second lien, $40M subordinated. Coordinated transition services agreement and working capital adjustments across three lender groups.

Closed in 72 days

Ready to Structure Your Acquisition Financing?

Our leveraged finance team is ready to model optimal capital structures and deliver competitive financing packages. We'll provide preliminary leverage analysis and lender recommendations within 72 hours.

Common Questions

What's the difference between senior and mezzanine debt?

Senior debt has first claim on assets and cash flow, typically offering lower interest rates (L+400-600bps) with financial covenants. Mezzanine debt is subordinated, accepting higher risk in exchange for higher returns (10-15% cash + PIK) plus equity participation through warrants. The combination allows higher total leverage than senior debt alone.

When does unitranche make sense vs. senior + mezz?

Unitranche simplifies execution with single lender and no intercreditor agreement, closing 2-3 weeks faster. It typically costs 50-100bps more than separate senior/mezzanine but saves legal fees and coordination time. Best for deals under $150M where speed and certainty outweigh cost optimization.

How much leverage can we achieve?

Leverage capacity depends on EBITDA quality, cash flow predictability, asset coverage, and industry dynamics. Typical ranges: 4.5-5.5x for cyclical businesses, 5.0-6.0x for stable recurring revenue models, 5.5-6.5x+ for asset-backed or software businesses. We model sustainable leverage based on multiple downside scenarios, not just base case.

How does TULA's compensation work?

Lenders pay TULA success fees upon closing—you never write us a check. Our compensation is percentage-based on total debt raised, perfectly aligning incentives. We only succeed when you close optimal financing on favorable terms with coordinated timing across all capital tranches.

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