What we do

Our experience tells us that the biggest impediment to borrowers improving the terms of their debt capital is time. Time to build relationships with lenders, time to analyse various capital structures, time to competitively benchmark different offerings in the market, and time to go through term sheets and documentation with the numerous parties involved.

By managing the full process right through to execution, we help borrowers achieve the most efficient and well-structured debt capital raising or refinance.

Below are some examples of how we add value to our clients:

  • We foster relationships with multiple financiers across various debt capital market products so that when it comes time for your organisation to raise debt we leverage pre-existing relationships;
  • We keep abreast of all the key trends in the debt markets so our clients know exactly what is a “good deal” for the product that is applicable to their capital structure;
  • We help analyse various capital structures and assist in determining the most appropriate source of debt or working capital;
  • We assist in running a competitive process for any particular debt product (from vanilla through to highly structured), or we coordinate multiple processes to provide the best possible choice;
  • We structure the right term sheet for raising or refinancing debt capital and use this as the basis for leading the engagement with prospective financiers; and
  • We take the time to deal with the multiple parties involved when raising debt capital, which is often very time consuming and not an efficient use of management’s time.

Our value-add is captured in three distinct elements to raising debt capital; Advising and Planning; Structuring and Marketing; and Process Management.

Advising & Planning

Raising new debt capital, or refinancing existing debt facilities, is an in-depth and time-consuming process that we manage on behalf of our clients. Before setting out to do so however, it is important we map out a plan to achieve the most efficient and cost effective funding outcome.

As part of this planning stage, we provide strategic advice required to assess the:

  • various options available for accessing debt capital markets including senior debt, subordinated debt, mezzanine finance and structured finance;
  • competiveness of each offering by benchmarking terms and pricing;
  • optimal path to navigate through the respective credit approval processes required for different financiers; and
  • impact on returns to equity holders.

Together with this strategic advice, we help map out a blueprint for achieving funding by the required timeframe. This involves:

  • Preparing a timeline with each step of the process itemised and key milestones established;
  • Completing our own credit assessment so we are across all the detail relating to the pitch to prospective financiers; and
  • Consulting with our client to determine which product is best suited (and whether or not it is appropriate to run multiple financing streams for different sources of finance).

Once each product has been assessed in the context of the borrower’s corporate and strategic objectives, we structure the key terms and conditions and use this as a basis for marketing to prospective financiers.

Structuring & Marketing

Knowing the terms and conditions that appropriately reflect the creditworthiness of a borrower as well as a financier’s appetite for risk is critical to achieving the most efficient and cost effective funding outcome.

Trident DCA specialises in structuring senior debt (loans, receivables financing, bonds, securitisations), subordinated debt and/or mezzanine finance for the purpose of:

  • establishing new debt facilities;
  • diversifying funding sources;
  • refinancing existing debt facilities;
  • an initial public offer;
  • making an acquisition or disposing of an asset or business;
  • returning capital to shareholders; or
  • restructuring and/or renegotiating existing debt facilities to align with the prevailing market conditions or as a result of a credit event.

The amount of structuring will vary markedly depending on a range of factors, including but not limited to the:

  • ownership structure (i.e. public vs private, listed vs unlisted);
  • volume and type of funding sought;
  • level of leverage proposed;
  • source of debt capital (bank, capital market, private investor, superannuation fund, credit fund etc);
  • ranking of creditors (i.e. senior, subordinated, mezzanine etc); and
  • security provided (if any).

We navigate through all these factors to ensure the structure and key terms and conditions are as competitive and cost-effective as possible.

Structuring however is only part of the solution. Managing the process to get from end-to-end is the third element to how we add value to our clients.

Process Management

Each debt raising process is different and requires varying levels of time and resources to achieve funding.

For a new debt capital raising, below are some of the typical steps required that, individually or collectively, can consume significant management time and resources:

  • Undertaking initial soundings with potential financiers across various debt products;
  • Sourcing other forms of capital in addition to traditional senior debt;
  • Managing the logistics of financier introductions and meetings;
  • Assisting in the preparation and collation of marketing materials (e.g. presentations, information memoranda, financial models etc);
  • Negotiating non-disclosure agreements for recipients of confidential information;
  • Preparing term sheets to achieve the desired capital structure with specific insight into lenders’ appetite for risk;
  • Managing financier Q&A and leading institutions through their respective credit approval process;
  • Running management presentations (as required);
  • Arranging fee estimates for legal documentation and selecting legal counsel;
  • Leading the engagement with lawyers to prepare draft documentation based on agreed term sheets;
  • Managing the negotiation process with all parties through detailed documentation;
  • Negotiating commitment letters so as to attain committed funding;
  • Managing the logistics for signing and executing legal documentation including satisfying all “Conditions Precedent”;
  • Liaising with the financier(s) (or Agent, if applicable) to ensure that funding occurs seamlessly;
  • Ensuring that securities (if any) are appropriately registered; and
  • Attending to any post-settlement work streams (if applicable).

The above list is not exhaustive and will vary depending on the complexity of, and the number of parties involved in a specific transaction. It nonetheless illustrates the time and resources that can be expended on a debt raising process – some of which require significant structuring skills and negotiating experience and others that are more mundane yet require the necessary time and effort.

Trident DCA specialises in running as many or as few of the above tasks as appropriate so that we achieve the most efficient and cost-effective funding outcome for our clients.