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Finacity has a diverse international client base, which consists of large, medium and small companies in a variety of industries. Finacity’s transactions appeal to different companies for different reasons, and are particularly applicable to companies with the following profiles:
- Domestic and international corporations selling to foreign customers
- Finacity can structure transactions such that foreign receivables are eligible
- Benefits:
- Gain in liquidity from currently illiquid assets
- Risk mitigation to foreign obligors
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- Corporations below investment grade
- Currently unable to securitize via traditional routes (ABCP conduit / term ABS) due to tough credit
- Finacity can help bootstrap the credit risks for a capital markets execution otherwise not available
- Benefits:
- Lower cost of capital
- Potential debt reduction
- True sale — balance sheet improvements
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- Middle market companies without the scale and/or the sophistication to securitize
- Companies with less than $100 million of receivables are generally not large enough to generate the interest of most ABCP conduits
- Finacity can simplify the transaction for our client by becoming the issuer
- Benefits:
- Cost efficiencies enable smaller executions
- Finacity’s typical Administrative role reduces investor concern over Seller/Servicer risk
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- Corporations with strong credit, but operational complexities
- Numerous operating units that are operationally dispersed and/or on different receivables management platforms create barriers to securitization
- Finacity can onboard assets from multiple operating units, consolidate on one platform and become the issuer for the client
- Benefits:
- Simplified transaction execution
- Ongoing securitization management and reporting
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- Corporations with a focus on acquisition
- Securitization through Finacity can help create additional capital needed for near term acquisitions
- Finacity’s construct provides for funding facility growth through the eventual inclusion of acquisition target’s receivables
- Benefits:
- Servicing and reporting homogenization
- Scalability
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- Corporations recently downgraded
- Companies recently downgraded below investment grade are unable to execute at previous rates
- Finacity can structure a multi-tier securitization to strip out the perceived Seller risk
- Benefits:
- Provides a capital markets option when traditional lenders are no longer interested in additional company credit risk
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- ROE/balance sheet focused companies
- Through securitization, companies can raise additional capital which is not necessarily classified as debt (subject to auditor approval)
- Benefits:
- Cash can be used to pay down debt in order to improve leverage ratios
- Cash can be used to buy back shares outstanding to improve ROE
- Offers the most efficiently priced liquidity that the capital markets will afford
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