The owners want to restructure debt and take advantage of favorable movement in rates.
The financial sponsor is looking optimize a financing solution. Given the collateral base, the senior term loan is maxed at 2x EBITDA, with the remaining 1 – 1.5x leverage coming from junior capital.
The reputable sponsor has limited operating history with the bank. The bank wants to lend an incremental half-turn of leverage but is constrained by the collateral base.
With 20% of CollateralEdge support behind the bank, they can mitigate the underwritten “airball” in a flexible way and provide a better financing solution for the sponsor.
CollateralEdge helps the bank lend deeper into the capital stack showing stronger support for the financial sponsor. The financial sponsor becomes a repeat, long-term customer of the bank.
“CollateralEdge is solving a massive problem for community banks that will positively impact thousands of hard – working entrepreneurs.”
CollateralEdge lowers the overall interest expense of the borrower helping them reinvest back into the business and optimize returns.
CollateralEdge is an innovative fintech platform that provides community and regional banks with a flexible, automated risk management solution to strengthen the credit profile on individual corporate loans.
A retail business negatively impacted by COVID and significant seasonality seeking to follow its departing relationship manager.
The financial sponsor has found a well-established manufacturing business that fits nicely within its investment criteria.
Financial sponsor has successfully rolled-up 40 dental practices and wants to restructure the associated debt.