CONSULTANCY

Debt financing and refinancing operations

Our professional services include the provision of economic, financial and legal advice on the following: (i) negotiating and renegotiating with financial institutions regarding the terms and conditions of the current debt, with a view to catering for the client’s financing requirements in the most manageable way possible, adapting them fully to its target capital structure, and (ii) negotiating and arranging, as appropriate, further borrowing and additional guarantees.

Our service is therefore crystallised as follows:

1. Quantifying a company’s short- and medium-term financial requirements, which involves analysing its current capital structure, drawing up an economic and financial plan on the client’s best viability options, depending on the present state of its working capital and short-term financial resources for financing its Working Capital Requirements (WCR). The feasibility plan should lead to a manageable and acceptable capital structure for financially supporting its growth, studying the current capital structure.
2. Basing ourselves on the feasibility plan and on the way in which expected earnings will generate additional working capital, there is a need to identify the capital structure that will be most appropriate for the company when applying for the necessary funding; in other words, the target capital structure. This involves determining, insofar as working capital is concerned, the best possible balance between short- and long-term equity for confidently financing WCR.
3. Advising the client during the arrangement of the restructuring agreement, according to the economic and financial position previously studied, checking the drafts of the documents on the operation’s restructuring, negotiation and formalisation, as well as the statements usually required for refinancing, and any guarantees that, as appropriate, may need to be arranged.