Course exam question 2
In the explanation we have:
"The deleverage strategy consists in repaying as much of the target's debt as possible. This answer isn't correct because Greco has low leverage to start with".
Is this explanation valid? HJI seeks for maximum leverage as stated in the case. But there isn't a statement about how HJI plans to repay its debts, only condition with agreed DSCR. So maybe because of this there is no guarantee that their LBO strategy is deleverage.