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      "text": "The common debt structure in an LBO is 4x Term Loan and 2x Bond.",
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      "text": "272. What is a common split between Term Loan and Bond in an LBO? \"The common debt structure in an LBO is 4x Term Loan and 2x Bond.\" Note: The 4x and 2x is off of EBITDA.",
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      "text": "271. How do you determine how much debt you can borrow in an LBO? \"PE firms determine how much debt they can borrow based on the company's ability to repay. They usually look at it through gross leverage and net leverage multiples.\"",
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      "text": "270. Why do private equity firms use leverage? \"Private equity firms use leverage because it increases their spending power and because it increases their investment returns.\"",
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      "text": "273. Why can't PE firms raise all the debt with Term Loan instead of the Bond? \"Term Loan comes with more attractive terms than Bond. For example, it has lower interest rate...\"",
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      "text": "V. Leveraged Buyout (LBO) C. Debt Financing",
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