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Debt Syndication & Structured Finance
Avendus assists corporates to leverage on debt as an instrument to raise capital through structured financial products for various requirements including projects, expansions, modernizations and in structuring and syndicating funds for acquisitions in India and overseas. Avendus has a wide network of relationships with investors globally apart from strong relationships with lending banks for acquisition financing and brings to these transactions innovative structuring to assist in quick closure of deals at competitive terms.
We help our clients raise structured debt from the market, which includes cash-flow securitization and factoring under various structured financing options. Apart from debt and structured finance, Avendus partners corporates in raising mezzanine debt financing and placing convertible instruments with investors.
In this business group, we also aid our clients raise rupee as well as foreign currency debt including syndication of ECBs and FCCBs.
Our value proposition is to consummate such transactions with the right lenders/investors at attractive terms in a time-bound fashion.
Financial Restructuring, Turnaround Funding and Special Situations
The distressed debt market in India is presenting ARCs, banks and funds with new opportunities and challenges. Corporates with financial turnaround objectives are exploring ways to structure their capital and resolve debt overhang with innovative structures to improve valuations for stakeholders. Avendus assists these corporates in working out a comprehensive restructuring and revival plan which includes working out strategies to unlock value out of assets or business and/or financial restructuring of liabilities. We leverage on the wide network of investors which Avendus has access to and assist corporates to raise funds for implementing turnaround strategies and financial restructuring of liabilities.
Special situations include leveraged buyouts of companies in distress, syndicating equity or convertibles instruments in high yield situations and other opportunities. We also work with banks and investors in India and abroad who are looking at aggressively selling as well as buying NPA portfolios.
Scope of Work
Typical engagements have the following phases in which Avendus works closely with the client’s team in consummating the transaction.
Phase 1: Collateral Preparation
In this phase, we start by engaging the client in a workshop where based on the company’s existing business profile, growth prospects and Avendus’ knowledge of the market, we help the client decide on the most effective funding strategy. We also prepare a complete packet of information which enables the transaction to be presented to potential lenders/investors in a structured way.
In this phase, Avendus helps the client to decide the best way to position the transaction, to get the right lenders/investors interested in the transaction.
Phase 2: Roadshow and Shortlisting of Potential Lenders
In this phase, we hold initial discussions with banks/financial institutions/investors and help the client arrive at an optimal shortlist of lenders/investors.
Avendus uses its network of relationships with banks, financial institutions and investors extensively in this phase to identify the right lenders/investors.
Phase 3: Commercial Terms Finalization
In this phase, Avendus helps the client analyze various offers from potential lenders/investors, drives deal negotiations with banks/financial institutions/investors and
ensures that the client enters into an agreement with the right bank/financial institution/investor which meets the client’s long-term objectives.
Avendus leverages its experience in closing transactions as well as its ability to create various options for its client, to create the most effective transaction structure for the clients’ shareholders.
Phase 4: Closure
In this phase, Avendus helps the client in coordinating the overall closure process, and negotiates on the final agreements with the potential lender/investor.
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