Jude Overo’s Post

International Financing Summary Latest Loan Structures Most transactions feature multi-year tenors, typically three to five years, with some extending as far as 2030. Loan-to-value ratios are not explicitly stated in most cases, but the sizeable facilities suggest relatively high LTVs, particularly for established companies or those with strong asset bases. While not universally detailed, covenant packages include standard affirmative and negative covenants, with some deals incorporating financial metrics tied to revenue, EBITDA, and liquidity. The prevalent structure across these transactions is the revolving credit facility, often complemented by term loan tranches. This hybrid approach allows borrowers to draw funds as needed while securing longer-term capital. Key Company Transactions ONWARD Medical's €52.5 million loan showcases a strategic approach to growth financing. The multi-tranche structure, with draw periods extending to 2027, allows the company to access capital as it achieves key milestones, aligning funding with its development timeline. The Term SOFR plus 6.50% rate reflects the risk appetite for innovative medical technology while including warrants, which provides upside potential for the lender. Eldorado Gold's $350 million revolving credit facility demonstrates the mining industry's ability to secure flexible financing. The four-year term with an accordion feature provides liquidity and room for expansion. Based on the company's net-leverage ratio, the tiered interest rate structure incentivizes financial discipline and could lead to cost savings as the company's performance improves. Genex Power's AUS$162 million refinancing for solar projects illustrates the favorable terms for renewable energy assets. The five-year facility with interest rates hedged at advantageous levels until 2030 provides long-term certainty and cost control. The involvement of international banks like DZ BANK and Westpac signals strong institutional support for the renewable energy sector. Tips For International Borrowers 1) Consider multi-tranche structures to align capital access with project milestones and reduce initial borrowing costs. 2) Explore sustainability-linked metrics to secure more favorable terms, as seen in Zelestra's €535 million facility. 3) Leverage strong asset performance to refinance existing debt on better terms, as demonstrated by Genex Power's solar project refinancing. 4) Prepare robust financial projections and clear operational milestones to instill confidence in lenders and potentially unlock additional tranches. 5) Consider hedging strategies to lock in favorable interest rates over extended periods, particularly in volatile market conditions.

Growth Cap & ABL Financing Summary Latest Loan Structures We're seeing a trend towards flexible financing structures with tenors typically ranging from three to five years. The CytoSorbents deal with Avenue Capital Group exemplifies this, offering a three-year term with milestone-based tranches. Loan-to-value ratios are generally conservative, as evidenced by Spruce Power's facility representing a 69% advance rate on discounted cash flows. Covenants are increasingly tailored to specific industry metrics and company performance, with a notable shift towards sustainability-linked terms, as seen in Guess?, Inc.'s European credit facility. The prevalence of accordion features and tranched availability, such as in BrightView's receivables facility expansion, indicates lenders' willingness to scale commitments as borrowers achieve growth targets. Tips For Borrowers 1) Leverage regulatory milestones or market expansion plans to structure tranched facilities, potentially lowering overall costs. 2) To align financial and ESG goals, explore sustainability-linked pricing mechanisms, such as Guess?'s European credit facility. 3) Evaluate the potential of receivables financing to unlock working capital, as demonstrated by the Hedaya Capital Group's $2.5 million facility for a personal care products company. 4) Prepare robust financial projections and operational plans to instill confidence in lenders and potentially secure more favorable terms. Key Transactions 1) CytoSorbents Corporation secured a $20 million credit facility with Avenue Capital Group. The facility features a three-year term and tranched availability tied to regulatory milestones. This deal demonstrates how life sciences companies can leverage potential market approvals to access capital. 2) Spruce Power Holding Corporation's $130 million non-recourse debt facility, priced at a fixed rate of 6.889% and rated A+ by Kroll, showcases the attractiveness of renewable energy assets to institutional lenders. 💡 Top Markets/Opportunities: Asset-Based/Growth Cap Lenders Focus 1) Renewable energy companies 2) Healthcare services providers in high-growth markets Family Offices Focus 1) companies developing innovative medical devices 2) Explore opportunities in the personal care products industry Private Equity Firms Focus 1) Companies in the pain management sector 2) Metal manufacturing industry Brokers Focus 1) Connect life sciences companies with lenders who understand milestone-based financing 2) Fast-growing consumer product companies that might be outgrowing their current lenders For more insights: https://lnkd.in/eSdDY6iB

Last Week's CRE Financing Summary (part 2): 💡 Top Markets/Opportunities: CRE Lenders Focus: 1) Affordable housing conversion 2) Luxury multifamily developments 3) Mixed-use developments CRE Developers Focus: 1) Developing mixed-use projects in growing secondary cities, which could also benefit local construction suppliers and subcontractors 2) Explore partnerships with life insurance companies, as this could lead to opportunities in developing build-to-suit projects or constructing properties that align with their investment criteria CRE Investors Focus: 1) Acquire underutilized properties in urban areas for conversion 2) Senior housing market as it might open up opportunities to invest in healthcare REITs or companies providing specialized services for senior communities CRE Brokers Focus: 1) Partner with legal firms that arrange complex capital stacks (mix of senior and mezzanine debt) 2) Provide services to developers navigating the complexities of affordable housing financing, including tax credits and public-private partnerships