Viálogos Corporate Consultancy
The financial consultancy service provided for refinancing processes consists of three complementary stages:
- Production of a company Feasibility Plan.
- Development of a refinancing proposal.
- Advice on presentation to and negotiation with the banks.
In more detail, the stages are as follows:
Stage 1: Production of a feasibility plan and financial model
The aim of the Feasibility Plan is to present the company's financial situation, prospects for its business model and forecasts which support the refinancing proposal forwarded.
It contains the following main components:
- Presentation of the company: description of the business model and operating risks.
- Analysis of the current economic-financial situation: debt structure.
- Business prospects: macroeconomic environment, situation of the sector and competition.
- Cash budget for the year in progress.
- Mid- and long-term financial plan.
- Company cash flow estimates.
- Financial modelling.
- Assessment of repayment capacity.
- Sensitivity to fluctuations in basic variables.
Stage 2: Development of a refinancing proposal
Together with company management and its legal advisors, a refinancing proposal to approach the banks with (Term Sheet), covering the following aspects:
- Analysis and recommendation of financing alternatives in line with the company's debt structure and feasibility plan.
- General outline of the operation: refinancing and/or new financing.
- Structure: stages, type (syndicated credit, loan certificates, confirming, mortgages…)
- Conditions: term and cost (reference rate, margin on reference rate, coverage).
- Guarantees for the operation (mortgages, sureties, pledges, chattels, etc.).
- Distribution between lenders.
- Schedule for repayment and amortisation (by contract, accelerated amortisation, cash-sweep). Reasons for accelerated maturity (cross default).
- Margin adjustments and covenants (debt service coverage ratio, own funds, dividend payment restrictions, new investment restrictions).
- Fee structure.
Stage 3: Advice on presentation to and negotiation with banks
Advice to the company on how to present its refinancing proposal to and negotiate with the banks, arguing how it makes sense for both the company and lenders. Counselling includes:
- Presentation and justification of the Feasibility Plan to banks (Information Memorandum).
- Attendance at individual presentations to banks.
- Clearing up queries about the refinancing proposal.
- Adjustment of the Feasibility Plan in the event of potential modifications in the refinancing proposal.
- Coordination with legal advisors to seal the operation and during any potential due diligence process.
Work in coordination with the company's legal advisors throughout the presentation and negotiation process.
If you are interested in this new service, contact the Viálogos Corporate Consultancy service and we will look into the financial solutions and products best suited to your business project.