Private equity makes loan payments with more debt to keep cash

Private equity funds are making payments with more debt but “payment-in-kind” loans don’t always come cheap.
Photo: Issei Kato/Reuters/Ritzau Scanpix
Photo: Issei Kato/Reuters/Ritzau Scanpix
By Lisa Lee / Bloomberg

Private equity titans are dusting off an old gambit to cope with the rising cost of interest on their leveraged buyout loans: Don’t pay cash. 

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