In the middle of June, we were mandated by an existing client to raise bridging finance of up to £20 m. The loan was partly to refinance existing indebtedness and partly for general working capital. The time scales were tight with important contractual payments needing to be made at the end of August. With insufficient cash flow to meet interest payments any funding needed to provide for interest to roll-up until maturity.
Having approached a small number of potential lenders, we swiftly selected a preferred partner and worked closely with them to finalise loan terms. We provided the interface between the client and its lawyers as well as providing commercial advice on loan terms. We were able to negotiate a deferred drawing of part of the loan significantly reducing the interest cost.
The loan for an overall term of 20 months was completed and drawn last week, ahead of the client's deadline.
We added significant value to the transaction by reducing interest costs, securing a loan facility that was substantially better for our client than anticipated by its lawyers and by negotiating to reduce other professional costs.
A full case study is available on request.