Debt push-down

Moving acquisition debt down into the operating company so its own cash flows service it directly.

Debt push-down in round numbers

Hypothetical: a US$200m acquisition uses US$120m of holding-company debt. Moving financing obligations to the operating company requires appropriate transaction and legal steps, such as a permitted refinancing or reorganization. Debt does not simply merge itself into another entity.

SPV / holdco · Structural vs contractual subordination · Term loan · LBO · Intercompany loan · All of the glossary