As a result of Jadestone’s recent capital increase, several of you have asked questions about some concepts of the capital structure. As you have also asked us about related topics regarding Newlat or New Fortress, we have decided to write an article to explain the main elements, their effects, and provide practical examples from various companies in our coverage universe, such as New Fortress Energy, OneWater Marine, Kistos, Vermilion, Cheniere, Newlat, and more, in order to enhance understanding.
As we have mentioned on several occasions, and also influenced due to the fact that some of us have professional experience in distress situations, restructurings, and debt-related matters, we believe that understanding the capital structure is crucial in the company valuation process. Furthermore, given the current macroeconomic environment, we believe that there are equally or even more interesting opportunities in this area compared to equity.
This article serves as an introduction, covering many key concepts and providing examples from well-known companies, which is the most practical and comprehensible approach. If you still have questions or are interested in more complex topics, we will prepare a separate educational module in the coming weeks (something we plan to do covering industries and subjects relevant to financial markets. Although it will be offered apart from the subscription plans, we have decided that everything we offer, will be included in the annual subscription).
