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For
most businesses, debt financing plays a key role in overall financial
strategy. However, lending institutions view the business profile
of the borrower from a different perspective than that of an equity
investor. The lenders do not just look at the growth opportunities
or likelihood of earning above-average returns on investment. Therefore,
presenting the borrower’s business profile from a creditworthiness
point of view is critical.
We
have extensive prior energy-sector lending experience (recourse,
non-recourse, limited recourse, and highly levered transactions
to investment-grade and sub-investment-grade borrowers) with a prestigious
money center bank. We possess the knowledge base to assist the company
(prospective borrower) in extracting the relevant information and
presenting the necessary information to lenders. We understand the
parameters and internal credit approval process of many lending
institutions.
We
can add value by:
- Preparing
comprehensive report (Information Memorandum) for financing
proposal, including corporate history and financial projection
(including development of financial/cash flow model);
- Selectively
identifying appropriate financial institution(s) and soliciting
debt proposals;
- Assisting
borrower in creating term sheet, or review and analyze “term
sheets” or any other financial proposals submitted by
the lenders;
- Assisting
in the negotiation of terms, covenants and warranties as well
as the documentation process until funding occurs;
- Preparing
industry analysis and benchmarking competitor financing;
- Preparing
financial (cash flow) models;
- Ensuring
consistency between sales/production and financial projection;
- Reviewing
independent engineer’s (reservoir/facility/construction)
reports.
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