/ Author: SPF

The business wished to pursue a number of opportunities to support its short to medium term strategies but the credit appetite of their existing bank was such that, notwithstanding the strength of the relationship between both parties, the bank could not accommodate the request for flexibility. This resulted in the client engaging with SPF.

Given both our experience in structuring debt packages, and the quality of the relationships we have across our lender network, we were able to quickly identify and structure an optimum solution, whilst engaging with a local lender who had the necessary appetite and expertise to deliver an appropriate outcome.

Given the fluidity surrounding the potential timing of some of those opportunities the client required the certainty of fully flexible, interest only, committed, medium term funding and that was facilitated through the provision of a four year revolving credit facility which provided an ongoing working capital facility and headroom for future capital expenditure to support planned business expansion. Not only did the product fully meet the client’s requirements in terms of flexibility and timeline, but economic benefit was also created through the inclusion of a pricing ratchet aligned to financial forecasts. As the aspirations of the business are delivered on, revenue and profitability will increase whilst leverage decreases, resulting in reduced interest margins and further cost savings.

The nature of the underlying transaction was such that security was provided in the form of guarantees rather than a charge over property assets.

Whilst maybe best known for our ability to structure real estate transactions, the creation and execution of a non-real estate solution, with inbuilt economic benefit for the client, showcases the breadth of our wider debt advisory expertise.