Arsenal Capital Partners' portfolio company, Pinnacle, a leading producer of high-performance adhesive technologies, has experienced rapid growth under Arsenal's ownership. Over just two years, Pinnacle's EBITDA increased from $13.5 million to $60 million. By mid-2021, Arsenal faced a pivotal decision: how to recapitalize Pinnacle to best support its future growth while keeping in mind Arsenal's investment exit timeline. With two acquisitions in progress and a robust pipeline of opportunities requiring significant capital, Arsenal considered four refinancing options: (i) expanding the existing direct lending structure, (ii) a hybrid solution involving both existing and new direct lenders, (iii) a first-lien syndicated loan, or (iv) a complete refinancing using both first-lien and second-lien debt. Each option presented distinct trade-offs in terms of cost, operational flexibility, and financial risk. Adding complexity to the decision were significant macroeconomic challenges, including rising inflation, supply chain disruptions stemming from the COVID-19 pandemic, and raw material shortages. Which refinancing strategy should Arsenal pursue to best support Pinnacle's growth, facilitate future acquisitions, and position the company for a successful exit in an uncertain economic environment? This case offers a valuable platform to compare the terms and features of various debt markets while analyzing a real-world decision faced by a private equity sponsor.