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Debt Financings
CM&M arranges
debt and mezzanine financings for clients for growth
capital, debt restructurings, buyouts,
recapitalizations and acquisitions. As
with equity capital raises, we assist our
clients from the design of a debt financing strategy through execution of the transaction,
and formulate a client's optimal capital structure based on the company's long-term objectives
and immediate funding requirements. In
today's tight credit markets, we source the
most cost-effective financial instruments
available from traditional and
non-traditional lenders that continue to be
active.
Because lenders have tightened
underwriting standards in the wake of the
current credit crunch, it is more important
that ever to prepare a financing memorandum
that clearly and succinctly describes our
client's business, financial history, and
prospects for generating sustainable cash
flows to meet expected debt service
requirements and achieve adequate financial
ratios.
Once the financing memorandum has been
prepared, we identify the appropriate
capital sources from our proprietary database and
make introductions to lenders that in many
cases we have known for 25+ years.
We evaluate multiple proposals to help select the best
lending partner. CM&M's professionals lead discussions at each step of the process and manage all negotiations to achieve advantageous pricing and terms for our clients.
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Mezzanine Capital
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- Convertible debt
- Non-convertible debt
- Debt with warrants
- Cash flow loans
- Second lien loans
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- Banks
- Specialty Finance Cos.
- Mezzanine Funds
- Private Equity Groups
- Pension Funds
- Insurance Companies
- Hedge Funds
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- Longer term (5-7 years)
- Moderate cost of capital
- Current interest payments
- Observation rights
- Debt covenants
- Generally Unsecured
- Flexible and Tailored
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Senior Debt
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- Lines of Credit
- Unsecured Senior Debt
- Secured Senior Debt
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- Banks
- Specialty Finance Cos.
- Pension Funds
- Insurance Companies
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- Short and long-term
- Lowest cost of capital
- Typically secured
- Amortization of term debt
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