In a competitive business environment, efficient access to various forms of debt and equity capital at the most beneficial terms and pricing is a key differentiator in terms of liquidity, financial performance, bidding processes and shareholder value. Centrus provides clients with a holistic offering across the banking, project finance and debt and equity capital markets, ensuring that clients have access to the full range of options in delivering the financing solutions most appropriate to achieving their corporate objectives.
In rapidly evolving funding markets we maintain strong and up to date relationships with a wide range of banks and other financial institutions. This ensures that our clients are able to rapidly identify and access the optimal sources of funding with the assurance of a competitive and professionally run process which presents the borrower’s credit to prospective funders in the best possible light.
Bank Finance – Senior & Junior Debt
The banking market has evolved recently in recent years with new regulatory and capital requirements having a significant impact on the pricing, tenor and terms on which banks are willing to base their lending decisions. This has had the impact of making the market much more fluid with appetite and preferences varying significantly across domestic and international lenders and at different times. With significant corporate lending experience across the team, Centrus understands the importance of lender relationships in delivering successful outcomes and maintains close contacts with the key lenders to our sectors as well as new entrants seeking to gain market share. These relationships provide us and our clients with a clear understanding of lenders’ specific preferences around structure, sectors, credit quality, tenor and pricing, allowing us to direct opportunities towards the lenders most likely to align with our clients’ funding objectives.
Our team’s banking experience also provides us with a clear insight into how banks appraise specific credits and lending opportunities and our aim when engaging with bank debt raising processes is to address as many of the key issues and questions likely to be raised by banks as possible in order to streamline the approval process and to increase the likelihood of a favourable response. Where possible, we will seek to bring multiple lenders into play in order to generate competitive tension for structure, terms and pricing. In these situations, we support the borrower by preparing a full information memorandum setting out the company’s credit story as well as the preferred structure and terms. This forms the basis of a series of bank meetings/presentations followed by receipt and evaluation of offers and negotiation with a preferred funder. Centrus will then work with the company and its lawyers in order to ensure that the commercial terms are properly reflected in the legal documentation to be entered into.
If interest rate hedging forms an integral part of the funding package in question, Centrus will ensure that the costs associated with hedging are properly understood and agreed early in the process so that this forms part of the overall economic appraisal of the offers received.
Sample Case Study
UK – Kelda Holdco refinancing
Centrus provided financial advice to Kelda in respect of the refinancing of the Kelda group holding company’s £95m bank loan facilities. As part of our role supporting Kelda, Centrus investigated and sourced competitively priced…Read More Download Case Study