Advisors' pre-financing services include the development
of a debt financing
This is an extensive
study which may include the following areas of review, and
others, when appropriate.
1. Review of the current
financing landscape faced by the organization, focusing on
the interest rates and terms experienced in recent
financings of similarly-sized organizations and
spotlighting the types of financial institutions with
current appetite for such financings (both fixed and
variable rate; taxable and tax-exempt).
2. Review of the
organization’s current operating health and recent
financial ratios, with an eye toward assessing readiness
to access the capital markets.
3. A review of existing
covenants for any debt outstanding and collateral position
to determine the organization’s ability to issue debt.
This analysis can be
done at a number of different borrowing levels, based on
scenarios developed by the organization’s management.
4. A review of any debt
outstanding for opportunities to refinance for savings
and/or restructuring purposes.
5. An updating of the
organization’s current operating projections to include
projected debt service schedules and any capital campaign
The updated projections
will be evaluated against expected covenant levels and
subjected to a sensitivity analysis measuring the impact
of changes in debt service levels and other operating
expenses or revenue items on financial ratios and
6. A review of the best
timing for accessing the capital market.
If it is determined that
the organization is immediately able to access the market
and would like to do so, we will begin the financing
Alternatively, if the
Feasibility Study indicates the organization should wait
to access the markets, we will make recommendations as to
the steps the organization can take to improve its financial readiness
within 6-12 months or longer as needed.