Pivot Points Newsletter: September 2022
Is non-traditional debt financing right for you?
A stressed or distressed company must maintain the liquidity it needs to continue running the business while positioning itself to satisfy its debts. This is where non-traditional debt financing can be helpful.
However, it’s first important to identify whether non-traditional financing is right for you.
If you’ve determined this type of financing is right for you, then we’ve laid out five steps to take to help you get a loan that best meets your needs.
Q&A: The debt financing market
In this Q&A, Chris Creger, CIRA, Principal, and David Weinstein, Southeast Practice Leader for Debt Advisory, of the Restructuring and Dispute Resolution practice at CohnReznick, talk about trends impacting growth in the debt financing market as well as the benefits and advantages that come with debt financing.Read more
Background: Specialty retailer and consumer lender needed support related to an acquisition and needed to raise a debt facility to finance the buyout.
Our Role: Lead Acquisition Advisor
- Finalized the structure of the sourced capital and connected the buyer with a provider who funded the capital required to acquire and operate the post-close store
- Helped buyer achieve a 30% increase in financial performance through revenue improvements and lean operation initiatives, including beneficial lease modifications
Background: An international family-owned business providing aftermarket replacement parts needed to rationalize a current business model for an existing lender and needed to source replacement working capital.
Our Role: Debt Advisor
- Successfully placed a new working capital facility supported by accounts receivable and inventory
- Designed a covenant package that allowed the company to meet liquidity and reporting requirements
Dealer, Restoration, and Auctioneer of Antique and Collectible Automobiles
Background: Multi-generational family business – specializing in collecting, dealing, and restoring rare and unique automobiles – undergoing bankruptcy needed a new capital source.
Our Role: Expert Witness and Debt Advisor
- Connected company with a new senior working capital lender
- Sourced secondary lender through an inter-creditor agreement to provide an over-advance facility for certain collections
TMA NYC Annual Golf & Tennis Outing (Oct. 11) – Attending
SFNet South Florida Fall Sunset Cruise on the Fort Lauderdale Waterways (Oct. 13) – Attending
ABS East (Oct. 17-19) – Speaking/Attending
IWIRC 29th Annual Fall Conference (Oct. 18) – Attending
NCBJ 96th Annual Conference (Oct. 19-22) – Attending
ABI Health Care Program (Oct. 27-28) – Attending
IMN 11th Annual Bank Special Assets & Credit Officer’s Forum (Midwest) (Oct. 27-28) – Attending
TMA Annual Conference (Nov. 1-4) – Speaking/Attending
GICLI 8th Annual Meeting (Nov. 7-9) – Speaking/Attending
SFNet 78th Annual Convention (Nov. 9-11) – Speaking/Attending
AIRA 21st Annual Advance Restructuring & POR Conference (Nov. 14) – Speaking/Attending
TMA DFW/SFNet Southwest/The Finance Forum Holiday Party & Toy Drive (Nov. 17) – Attending
Annual TMA-SFNet Holiday Extravaganza at Lauderdale Yacht Club (Dec. 1) – Attending
ACG South Florida 8th Annual Private Equity Wine Tasting & Holiday Party (Dec. 7) – Attending
ABI Annual Winter Leadership Conference (Dec. 8-10) – Attending
Junior Debt Holder
Our role: Improved a junior debt holder’s collateral position in the bankruptcy of an international cosmetics company as well as performed financial and collateral analysis relative to the debt structure and provided expert witness testimony in the court proceeding
Our role: Advised an international private equity firm on the complex restructuring of its Fannie Mae loan secured by the firm’s significant multifamily investment
International Group Purchasing Organization
Our role: Conducted a forensic analysis of volume rebates and other purchase incentives for an international procurement service provider
Our role: Performed case file due diligence and analytical procedures regarding the financial condition and reporting capabilities of the funded entity
Our role: Provided an expert report in a private antitrust matter regarding best practices to mitigate anti-competitive activity and barriers to entry
Our role: Provided an expert rebuttal report regarding the responsibilities of a trustee to administer timely put-back claims pursuant to related agreements and industry practice
Global Industrial Equipment Manufacturer
Our role: Built a fully integrated treasury management tool to track and manage cash flow across 150 countries
Bioscience R&D Firm
Our role: Assisted in the development of a five-year forecast and associated DCF valuation with multiple funding structures to enable the client to monetize its product line
Concrete and Aggregate Supplier
Our role: Developed a business assessment model and valuation tool to allow our client to quickly assess and filter potential acquisitions for an aggressive growth strategy
Nursing Home Company
Our role: Advised on restructuring and repositioning of the business; devised an out of court strategy for debt reduction/repayment and implemented day-to-day cash management and vendor strategy