Borrower Resources

Behind the Curtain in Today’s Debt Markets

Currently, it seems like lenders want to lend and prices are down. But is that the true state of corporate lending? Recently two PE partners asked CAPX what we think is happening in the debt markets today, since CAPX is always “in market” with deals and we...
By Rocky Gor
Borrower Resources

Middle Market Refinancing: The Complete Guide

72% of transactions conducted in the institutional debt market during Q1’ 24 have been for refinancing and repricing. This is the highest level of refinancing volume experienced in this market in over a decade.  While the institutional debt market is relevant for...
By Rocky Gor
The Credit Perspective

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. Given how critical covenants are to a lending...
By Rocky Gor
Borrower Resources

First Lien Term Loan: A Closer Look

A first lien term loan is one of the more standard debt structures. First lien term loans are senior secured debt that maintain first right on collateral and first payout position. This debt structure is offered by a broad range of capital providers, and can be paired...
By Rocky Gor
Borrower Resources

Second Lien Term Loan: A Closer Look

A second lien term loan is debt issued to supplement first lien debt that is already in place or is to be issued simultaneously. As the name suggests, second lien debt is second in its rights over the collateral, after first lien debt. But it is still considered...
By Rocky Gor
Borrower Resources

FILO Loan: A Closer Look

Designed to supplement limited amounts of first lien debt provided by banks, a first-in-last-out, or FILO loan, maintains a senior secured first priority lien on all assets of the borrower. As the name implies, FILO is the last to be repaid from the proceeds of the...
By Rocky Gor
Borrower Resources

Bifurcated Loan: A Closer Look

Unlike a traditional first lien debt provided by banks, where lenders maintain a senior secured first lien on substantially all assets of a capital seeker, in a bifurcated term loan, the collateral pool is “bifurcated”, such that current assets are typically pledged...
By Rocky Gor
Borrower Resources

ABLs: A Closer Look

An Asset Based Line of Credit, or ABL, is a working capital line of credit where the loan amount is governed by the appraised value of one or more assets (a borrowing base). Given this correlation between the loan amount and underlying collateral value, ABLs are...
By Rocky Gor
Borrower Resources

Unitranche Debt: A Closer Look

Designed to be a one stop or single tranche solution, a unitrache facility combines a small line of credit with a larger term loan, extended through an acceptable total leverage threshold. Unitranche debt is secured by a senior secured first lien on all assets of a...
By Rocky Gor
Borrower Resources

Mezzanine Loans: A Closer Look

Mezzanine debt is often viewed as a bridge between debt and equity financing. That is because mezzanine loans contain warrants (options), enabling the lender to convert the debt into stock. Even though interest rates are exorbitant (sometimes as high as 20%), this...
By Rocky Gor
Borrower Resources

Cash Flow Line of Credit: A Closer Look

Businesses often fall short on cash flow during extended sales cycles, which provokes the urgent need for capital in order to cover short-term working capital expenses. A Cash Flow Line of Credit is a working capital line of credit that covers the period between the...
By Rocky Gor
Borrower Resources

6 Ways a Digital Marketplace Helps Independent Sponsors Secure Capital

Identifying and contacting lenders, devising capital structures and pitching the ‘credit story’ of your deal are all time-intensive activities. These often distract from higher-value priorities such as sourcing new opportunities, cultivating operating partnerships and...
By Rocky Gor
The Credit Perspective

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...
By Rocky Gor
Borrower Resources

Direct Lending: A Closer Look

The US direct lending market has grown in popularity in recent years, thanks to a shifting regulatory landscape which has prompted borrowers to seek alternatives to traditional bank financing. Direct lending offers a number of advantages over banks for both borrowers...
By Rocky Gor
The Credit Perspective

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...
By Rocky Gor
The Credit Perspective

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...
By Rocky Gor

HOW CAN WE HELP?

CAPX, LLC

+1.310.299.9787
info@capx.io

ORIGINATE NATIONWIDE

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  • Learn how you can leverage your existing originations infrastructure on CAPX to find deals nationally, at no additional cost
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  • Discuss our track record and go to market strategy
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KNOW THE MARKET FOR YOUR CREDIT

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  • Learn about the current debt market trends, transaction activity and potential opportunities for your company
 
Get our views on the most efficient ways to obtain the capital you need
 
Understand how CAPX can help you find capital at a national scale, and at your option, see a demo of CAPX

SEE CAPX IN ACTION

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  • See how easily you can create an optimal debt structure, find your debt capacity and obtain term sheets on CAPX
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  • Learn about the current debt market trends and transaction activity 
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  • Get our views on the most efficient ways to address your capital needs