RAISING DEBT WITH FLEXIBLE COVENANTS

We have a business under LOI. In the first 2 years of ownership, this business will need internal investments to finance an update of the technology stack (this will be mostly classified as capex). To this end, we'd like to have some flexibility in our debt documents to allow us to fund these investments from our cashflow. Perhaps there is either covenant relief for first 24 months or ability to PIK the interest for some time.

It would be great to connect with someone who raised debt on these terms OR someone who works at a capital provider who is comfortable with funding a debt structure like this?

My sense is that traditional banks have a tougher time doing non-standard loans but I welcome folks' thoughts on that front as well (are there banks who'd be open to flexibility?)

Thank you!



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