Asset Based Revolvers (ABL)

Asset-based lending is a collateralized business loan secured by tangible and sometimes intangible assets. The line of credit is typically secured by inventory, accounts receivable, and fixed assets (real estate and/or machinery & equipment). The amount that a borrower can borrow fluctuates monthly based on a borrowing base calculation that utilizes advance rates against eligible collateral. These structures can also include junior asset based term loans or FILO (first-in last-out) whereby lenders provide an incremental advance rate in addition to the advance provided by the asset based revolver.

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Acquisition Financing

Acquisition Finance is the use of debt, equity and also hybrid financing products to effectuate an acquisition. The focus of acquisition finance is on identifying the optimal financing solution for a company. This occurs when the cost and flexibility of the financing structure is linked to the company’s cash-flow based value and growth potential. Typical debt structures include: asset based revolvers, cash flow revolvers, term debt (1st and 2nd lien), bonds, and mezzanine tranches.

Focus on Execution

Specialized transactions require a specialized investment banker to optimize client outcomes and success. A generalist approach generally results in average outcomes while at OceanArc we strive to exceed the expectations from management teams and boards of directors.

Special Situation Financing

Often caused by cyclical or extraneous issues, a company can find themselves in a unique position whereby they are facing liquidity shortfalls as a result of underperformance, operational problems, pending debt maturities or over-leveraged balance sheets. The inability to access much needed capital is critical to executing a turnaround plan. Via innovative credit structuring ideas, companies can typically access a blend of bank and alternative sources of capital to bridge its transitional period and execute on its business plan.

Restructuring Finance

Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress, typically during restructuring under corporate bankruptcy law (such as Chapter 11 bankruptcy in the US or CCAA in Canada). Plan of reorganization financing (POR or exit financing) is the financing that occurs when a debtor successfully emerges from its Chapter 11 case.

Credit Facility Amendments

Occasionally secured credit facilities require an amendment to the financial covenants or credit facility "baskets" to allow a company to continue operating without being in default of its contract with its lenders (i.e. credit agreement). The strategic process of negotiating a waiver of any such defaults or recasting the covenant type and/or amount to better reflect the current risk profile and forward outlook of the Company.

Special Projects / Diligence

Clients (companies, sponsors, and lenders) often require specialized advisory services such as assisting management with preparing to access the capital markets, debt product expertise and execution services, assistance with strategic direction when negotiating with a lender group, risk management and diligence services regarding collateral and cash flows of a prospective borrower.