Capital Advisory & Placement
Capital Advisory & Placement
Anchor Peabody’s Capital Advisory & Placement Service advises middle-market building industry companies in the restructuring and/or refinancing of existing loans and in the sourcing and optimizing of terms on new senior, mezzanine and/or other debt/equity capital. The goal of our practice is to arm middle-market companies with the market knowledge and technical expertise necessary to effectively evaluate and affect viable capital-related solutions. In the current lending environment, we believe it is imperative for companies who want or need to explore options for maturing loans, refinancing loans and/or searching for new debt and equity capital, to run a proactive, thorough and sophisticated process.
We believe our building industry focus and decades of experience as operators, owners, acquirers and sellers of middle-market building products companies gives our firm unique insights into:
- Prudent and feasible capital structures and debt terms for building industry/cyclical industry-based firms
- Which capital sources (bank and non-bank) are currently providing capital to the building products industry, and which are a fit for a particular company’s profile and needs
- How to position a company’s story and financial position to the right lenders in the current market environment
- How to renegotiate existing loans and/or optimize the structure, terms, pricing and flexibility on new debt capital
Our Capital Advisory & Placement Service advises companies in the following key areas:
- Working with management to determine the company’s ideal and feasible capital structure.
- Advising the company regarding existing loan renegotiation and restructuring options.
- Identifying a universe of the right potential lenders that have a current appetite for loans within the Company’s profile and proposed capital structure.
- Leveraging our relationships with, and knowledge of, lenders (bank and non-bank) across the U.S. to maximize options and ultimately optimize loan structure pricing, terms and flexibility.
- Creating thorough and “lender-friendly” underwriting packages that properly communicate the company’s story, lay out detailed cash flow/ financial models, collateral analyses, liquidation analyses and multiple performance cases/scenarios.
- Leading the financing process, including managing the deal timeline, data room/due diligence process, information communication, management meetings and securing competitive bids.
- Advising management in review of loan proposals to optimize structure, terms, pricing, fit and flexibility, including facility size, collateral advance rates, collateral ineligibility definitions, bank fees (closing, unused line, annual, monitoring, prepayment, etc.), reporting requirements, representations & warranties and indemnifications.
- Financial modeling of loan proposal to “stress-test” proposed covenants and ultimately set reasonable deal covenants and terms.
- Advising management and company counsel in review and negotiation of definitive loan documentation.
- Performing other tasks as needed to facilitate closing.
- Helping management prepare for post-closing financial reporting.
Debt & Equity Profiles
- Companies with $5 – $50 million of EBITDA
- Finance types:
- Senior debt (asset-based loans, revolving lines of credit and cash-flow loans)
- Bridge financing and special situation loans
- Private equity (preferred stock and common stock)
- Capital sources:
- National, regional and local traditional banks
- Non-bank lenders, including asset-based lenders, private financing companies, hedge funds and invoice factoring
- Mezzanine/sub debt lenders
- Private equity firms
- High net worth investors/family offices