Credit Value Investments offers various financial solutions ranging from debt to equity,
An alternative to bank financing, characterized by much greater flexibility. This kind of financing is available to companies in stable operating situation, with regular cash flows.
Senior debt can be used for investments, acquisitions of competitors or simply to strengthen working capital in periods of fast growth of the business.
Funds for repayment come from cash flows, however, principal may be repaid in bullet or balloon. This enables accumulation of funds or increase of working capital in the company. Usually the tenor does not exceed four years.Financing is secured by the enterprise’s assets.
Financing is secured on the enterprise’s assets.
Maximum amount of financing is 3.5x EBITDA.
Financing used when existing suppliers of financing (e.g. banks) are reluctant to increase their exposure. It enables to finance further growth of the business without the need to find third-party equity investors and change the ownership structure.
This debt is subordinated in terms of repayment and security compared to other sources of financing, e.g. bank financing. It may be used for investments, acquisitions, strengthening working capital or recapitalization (payment of higher dividend or purchase of own shares).
It is much more flexible than bank financing due to e.g. ability to capitalize interest (Payment-In-Kind). Funds for repayment – usually within four years – come from operating cash flows, with the bullet repayment at maturity.
With the junior debt offered by CVI, the total debt of a given company may be as high as 4.0-5.0x EBITDA.
Perfect when a comprehensive financial solution is needed, while time or structural constraints apply. Allows to blend senior and junior debt into a single, simple product, fully provided by CVI. This greatly facilitates the process of obtaining financing for new projects or for optimization the existing financial structure.
Enables replacing many suppliers of various forms of financing with a single solid partner – CVI.
The raised funds may be used to refinance existing liabilities, acquisitions, strengthening working capital or recapitalization.
Repayment from current cash flows over a period of up to four years, in bullet instalments or a balloon instalment. Secured on assets of the financed company.
Unitranche financing provided by CVI may be as high as 5.0-6.0x EBITDA of the company.
The most flexible type of financing offered by CVI , because, depending on the situation, it may take the form of debt or private equity investment. Mezzanine financing accepts different sources of repayment, which , in addition to operating cash flows, could include refinancing, e.g. after a successful investment, or even sale of assets or the whole business.
This financing is usually provided for up to four years and may serve such purposes as investments, acquisitions, buy-outs, recapitalization, restructuring or project financing. Interest capitalization (PIK) and bulett repayment at maturity are permitted. In many cases investee companies are also allowed for early repayment option (call option)
Partial settlement through warrants or other equity instruments is also possible.
In a typical situation with the use of a mezzanine instrument, the total debt of a company can reach 5.0-6.0x EBITDA.
CVI can also provide financing for entities in difficult liquidity situation or in the course of restructuring, however the available collaterals will also play a key role in our assessment.
CVI is able to be involved in comprehensive restructuring processes and, for instance, within those processes it can perform a series of transactions of debt purchase from banks or other suppliers who want to free their funds without waiting for the success of the restructuring process.
In such cases the financing supplied by CVI can be in the form of both debt and private equity. It is always tailored individually to a given situation.
CVI is also able to invest into convertible debt or directly into the equity. However, in such situations there has always to be a predetermined exit route. In transactions of this kind we are able to provide funds of up to EUR 10m. with the prospect of exit within three or four years. CVI buys minority stakes.