HoldCo Debt Consolidation?

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October 01, 2025

by a searcher from University of Edinburgh - Business School in Boise, ID, USA

I'd love to connect/chat with anyone who has experience consolidating debt within a HoldCo. We will soon have 4 companies in our HoldCo and all have been purchased with the seller carrying a significant note. We are considering consolidating the notes into longer term debt. Happy to speak with lenders but really want the perspective of other HoldCo owners out there.
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Reply by a searcher
from St. Cloud State University in Sheridan, WY 82801, USA
^redacted‌ The cautions around cross-collateralization and exit flexibility are definitely real. That said, I don’t think HoldCo consolidation is automatically a bad idea. It can actually work well if it’s structured thoughtfully: • Covenant & collateral carve-outs, so one OpCo wobble doesn’t take down the entire portfolio • Hybrid structuring, consolidate the larger seller notes or high-cost debt, but keep flexibility with siloed OpCo facilities • Exit planning upfront, negotiate paydown mechanics so you can still sell an OpCo without triggering a forced de-leveraging of the whole HoldCo In my view, the “don’t do it” advice applies when people just roll everything up without those protections. With the right lender and structuring, consolidation can improve cash flow and simplify the cap stack while still preserving optionality.
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Reply by a lender
in Falmouth, MA, USA
Thanks for the tag ^redacted‌. ^redacted‌ feel free to reach out to redacted The options may vary depending on the size and structure.
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