Asset Based Loans - Ken Kaplan

Structured Financing Transaction Parameters

Structured Finance provides companies with annual revenues of at least $20 million with cash flow oriented loans via senior secured debt by utilizing your company's assets, stock, and favorable historical earnings trends. It allows your company to achieve continued growth and maximize profitability.

CLIENT PROFILE

Geographic Area: National

Type of Business: Manufacturers, Wholesalers, Retailers and selected Service Companies.

Applications:
• Acquisitions
• Mergers
• Recapitalizations
• See Recently Completed Deals

Transaction Size: $2 million to $75 million, or larger

General:
• Experienced management
• Strong sponsor
• Viability
• Diverse product and customer base
• Significant market share

ASSET/LOAN PROFILE
• Term debt repayment must be supported by sufficient historical, current,
and projected cash flow.
• Senior debt secured by assets and stock
• Favorable historical EBITDA trends
• Favorable historical fixed charge coverage
• Favorable multiple of free cash flow
• Strong accounting systems and controls
• Projections in line with historical growth
• Loans with hard asset values greater than 60%
• Companies possess higher cash flow and debt service predictability

Pricing: Floating rate over prime and/or LIBOR. Fixed rate pricing is available.

Term: Revolving credit facilities three to five years and fixed asset amortization up to seven to ten years.

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