The Do’s and Don’ts of Negotiating Financial Covenants
Financial covenants are an early warning system for lenders. A borrower failing to meet its covenant requirements is akin to a smoke alarm going off: not necessarily a problem, but worth checking to see if there’s a fire.
The Middle Market Lending Process: You’ve Made the Pitch, What Happens Next?
This article originally appeared in Forbes. Here’s a horror story for you: You’re a private equity or corporate borrower looking for a loan. You approach your small network of bankers and find one eager to do the deal. So you commit to a nonrefundable underwriting deposit (in the neighborhood of $150,000) and months of legwork, […]
Why PE Firms Should Create a National Competition for Their Deal Flow
Hey PE professionals, has this ever happened to you… You decide to approach the debt capital markets—maybe a portfolio company has hit a rough patch, or is considering an acquisition, or perhaps your firm is seeking a dividend recap—whatever the reason, you reach out to the handful of lenders with whom you have a prior […]
How Lenders Think About Credit Risk, and How it Differs from Equity Risk
Cyclical industries such as Wholesale, Retail, and certain Manufacturing sectors are facing the dual pressures of rising inflation and lagging supply chain disruptions. Current unstable market conditions are prompting many CEOs and CFOs to consider their liquidity options.