SENIOR DEBT
FINANCING:
Capital Benefits
Group can provide corporate clients with senior credit
facilities secured by accounts receivable, inventory, and
equipment. In special situations, we also arrange mortgage
financing secured by real estate. As a general rule, we
work on transactions that are greater than $2 million (and
as large as nine figures).
Our clients typically have outgrown their existing credit
facility, or are in need of a lending institution that will
recognize the full collateral value of the borrower's
assets. In other cases, the client may be facing a degree
of financial adversity and needs to refinance existing debt
with a new lender more suited to the present circumstances.
We sometimes arrange such facilities with a commercial bank
in the client's geographic area, but more often with
non-bank institutions located throughout Australia or
overseas. Mostly, these lenders will assume more risk than
commercial banks and are more likely to consummate
difficult credit transactions requiring less restrictive
covenants. In either case, Capital Benefits Group utilizes
an extensive network of lending houses throughout Australia
and overseas to negotiate a facility ideally suited to the
client's specific circumstances.
OUR DEBT FINANCING FACILITIES INCLUDE:
•
Senior debt, in the form of
revolving working capital credit facilities which may be
secured by receivables and/or inventories.
•
Mezzanine financing, in the form of
long term subordinated debt, usually involving some equity
features such as warrants. Read more
•
Equity financing, in the form of
common or preferred stock, or occasionally limited
liability/partnership interests.
•
Bridge financing, in
anticipation of an identified securities placement, asset
divestment or other repayment event.
•
Commercial mortgage financing, secured by
industrial/commercial real estate.
•
Equipment finance, (for large
ticket items) in the form of leases, chattel mortgages and
industrial hire purchase arrangements.
SOME
CASE HISTORIES:
• We advised on
the financial restructuring of a specialist finance
company, involving the conversion of the debtor receivables
portfolio into a securitization-based recapitalization of
$200 million.
• We advised on the financing and acquisition of a listed
regional airline for a successful private purchaser,
involving eventual privatization through our successful
raising of debt and equity financing in excess of $60
million.
• We provided commercial property acquisition advice
including ownership structures, debt finance procurement
and, conducted successful purchase negotiations in the
amount of $42 million.
• We advised on and managed the turnaround of a large rural
business, involving negotiations with a banking panel to
bring about debt restructuring, necessitating our
introduction of new equity and partial debt refinancing of
$13 million.
