HomeCase studiesBanks & financial institutionsClient take-onPutting together a successful deal using pre-lend structuring

Why the client needed our help

Our client, a specialist finance provider, had been approached by a wholesale distributor to the motor engineering sector, to provide it with a composite finance facility which would enable the business to strengthen its financial position in a challenging market.

The company was already a user of invoice finance but wanted greater leverage from a wider range of its assets to maximise the funds that could be made available to it.  Our client wanted us to assist it to structure a composite facility using a range of its financial products.

How we helped

This was a complex, document-heavy transaction involving the co-ordination of many parties completed against a back-drop of increasing financial pressure on the company.

Working with our client, we created a full asset based lending package comprising sales finance, property loan finance and a revolving inventory finance facility.

We also advised, prepared and negotiated with the company’s solicitors on all the documentation for the security for the ABL facility. This security was taken from a range of security parties connected to the company granted in favour of each of our client’s finance providers, and included group company and directors’ guarantees, all asset security from the borrower and the guarantor companies, legal charges over real property and assignments of trade marks. In addition, we arranged for director and shareholder loan subordinations in favour of our client, waivers from the company’s multiple landlords to enable our client to exercise its rights over security assets, the release of the former financier’s security over the company’s assets and a cross collateralisation agreement between the financing parties.

The outcome

By working together with us, we were able to ensure that our client could deliver a financial product to the company that was both a big improvement on its previous facility to enable it to continue trading, and ensuring that their interests were fully protected by a strong security package.

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