A financing vehicle that allows companies to lock in capital availability by providing quick access to medium to long-term, fixed rate debt financing.
Characteristics
This multi-year arrangement is a cost-effective way to create additional debt capacity that can be used for your company’s future capital needs and to complement traditional bank financing. A Master Note Facility established with Private Capital Investors is initially put in place for 2 to 3 years with optional renewals. We work with you to underwrite and complete the legal documentation upfront. The Facility allows for multiple draws over its life. When you decide to draw under the Facility, you can do so in a matter of days with each draw tailored to meet your company’s specific needs. Draws take the form of Senior Debt.
Typical Uses
- Refinancing of bank debt
- Funding capital expenditures
- Funding merger & acquisition activity
- Recapitalizing your company’s capital structure
Transaction Structure
Size: Typical facility size from $50 million to $250 million
Initial Costs: Typically, a set-up fee and legal costs
Commitment Fee: No commitment fees on undrawn amounts
Draws Under the Master Note Facility
Size: Typical draw from $10 million to $150 million
Maturity: Typically, from 5 to 15+ years, providing longer maturities than traditional bank financing
Repayments: Individually tailored to meet your company’s needs, including bullet maturities or customized amortizations
Documentation: Similar to bank lender documentation requirements
Currency: Predominantly USD with ability to provide select foreign currencies (€, £, AUD and CAD)
Note: Transaction characteristics and structure may vary.
Recent Transactions
