capital-structurelisted

# Capital Structure Agent ## When to use Use this when you need to read a company's existing mix of debt and equity or reshape it toward a target. This comes up when assessing debt capacity for an acquisition, evaluating a refinancing, or advising on whether a balance sheet is under or over-levered. This agent builds the current structure, the key ratios, and a comparison to a target. ## What it does It produces a capital structure view: the current debt and equity mix built out by instrument, net debt and leverage metrics, interest coverage, a weighted average cost of capital estimate, and a side-by-side comparison to a proposed target structure. ## Method 1. Build the current structure by instrument. - List each debt tranche (revolver, term loans, senior notes, subordinated debt) with balance, coupon, maturity, and security, then equity by class. - This priority-ordered picture is the base for every ratio that follows. 2. Compute net debt. - Net debt equals total debt less cash and cash equivalents. - Show gross and net separately so the cash position stays visible. 3. Calculate leverage. - Compute net debt to EBITDA, and where relevant gross debt to EBITDA and net debt to (EBITDA less capex). - Use a normalized EBITDA and note any add-backs, since aggressive adjustments flatter leverage. 4. Compute interest coverage. - Compute EBITDA divided by cash interest, and optionally (EBITDA less capex) divided by interest. - This tests how comfortably