Asset Securitizations allow companies to isolate cash flowing assets in special purpose corporations in order to improve the underlying credit in a transaction. Mezzanine Debt, in the form of subordinated debt with warrants, can provide a layer of capital for rapidly growing companies to support higher financial leverage. Pricing is fixed on a bond equivalent basis, based on a spread dictated by the credit quality of the issuer and comparable Treasuries. Interest is typically paid semi-annually, principal annually. Covenants typically relate to cross default, net worth maintenance, fixed charge coverage and event risk protection.
Investors generally expect to be parri-passu with bank debt regarding collateral positions.
Screening Criteria are usually based on performance benchmarks and balance sheet benchmarks which correspond to the ratings of the National Association of Insurance Commissioners. As our New York representative and co-advisor, Hambro handles certain administrative, structuring and distribution services for our clients. Hambro ranks in the top five advisors within the Private Placement market. With this relationship and our in-house professionals, Hibernia's Corporate Finance Group can offer our clients state of the art in Private Placement services at the most competitive pricing. All loans subject to normal credit qualifications.