SKYRIDGE CAPITAL. Global Investors & Financiers. Skyridge Debt: Senior Subordinated Lines of Credit Convertible Debt to Equity

Transcription

1 SKYRIDGE CAPITAL Global Investors & Financiers Skyridge Debt: Senior Subordinated Lines of Credit Convertible Debt to Equity

2 Skyridge Capital are global investors and financiers specialising in debt and equity capitalization of projects, funds, assets and ventures across the capital stack.

3 WOLE CAPITAL STACK FINANCIERS Skyridge Capital are whole-capital-stack investors and financiers. We specialize in creating bespoke debt and equity structures that capitalize funds, projects and ventures to optimum performance. Debt Equity Capital Stack 100% Co-GP & JV Equity Co-GP Equity to 100% 80-97% LP Equity LP equity to 100% of cap stack (typically 90% total equity) 70-90% Junior Mezzanine Debt &/or Preferred Equity Subordinated debt to 100% LTC (typ %) Preferred equity to 100% of cap stack (typically 80-90%) 50-70% Senior Debt Senior Debt Senior secured debt facilities to 100% LTC (typically 50-70% LTC)

4 Debt: - Senior Debt - Junior/Mezzanine Subordinated Debt - Revolving Lines of Credit - Convertible Debt to Equity

5 DEBT CAPITAL Senior and Junior/Mezzanine Debt Lending Debt Equity Capital Stack 100% Co-GP & JV Equity Co-GP Equity to 100% 80-97% LP Equity LP equity to 100% of cap stack (typically 90% total equity) 70-90% Junior Mezzanine Debt &/or Preferred Equity Subordinated debt to 100% LTC (typ %) Preferred equity to 100% of cap stack (typically 80-90%) 50-70% Senior Debt Senior Debt Senior secured debt facilities to 100% LTC (typically 50-70% LTC)

6 SENIOR DEBT INVESTMENT PROCESS Skyridge Capital are global debt financiers specialising in structured debt facilities for large-scale project developments and asset acquisitions, as well as credit facilities for debt and equity based investment funds. We are regarded as a financier of choice for complex projects and lending cases where traditional lending institutions simply cannot transact. Assessment Approval Placement CASE STUDY Senior Debt Investment Range - 50 million to 1+ billion ($/ / ) Initial assessment against investment criteria Credit brief prepared Security & capital structuring Challenge A US contractor had secured a utility infrastructure expansion project in a historically war-torn country in the Middle East requiring 100% debt funding against essentially worthless security. Solution Skyridge Capital worked with the state government of the Middle Eastern country and a global banking institution to create security collateral from a bank instrument (SBLC) that would offset the extremely low risk grade of the project. Result Within a 4 months, Skybridge was able to provide a 100% LTC construction loan at low interest rates to fund what was deemed an unfundable project. Markets - Global mature and emerging markets Key Benefits - Secure senior debt at maximum leverage - LTC ratios up to 100% depending on security - Complex project funding facilities - Revolving lines of credit - Floating & fixed loans at low rates (L+ 2-10% pa) - Creative security structuring for complex deals Asset Classes & Sectors - Equity & debt funds (sector agnostic) - Project financing: - Real estate - Energy & power - Infrastructure - Natural resources - Private equity - Corporate finance Indicative terms issued Detailed internal analysis & borrower meetings Heads of Terms issued & accepted Provisional investment committee approval Due diligence & conditions precedent satisfied Facility approved by investment committee INDICATIVE PLACEMENT TIMELINE Facility agreement Capital allocated & deployed Facility monitoring & management months Our funding structure also created a template for the state government to roll out additional projects in the future. General Criteria & Terms - Satisfactory equity contribution &/or security - Seasoned sponsor/asset manager experience Satellite Offices Los Angeles Geneva Sydney London +44 (0) St. James s Square London SW1Y 4JU New York +1 (212) Park Ave Manhattan NYC 10017

7 MEZZANINE & JUNIOR SUBORDINATED DEBT INVESTMENT PROCESS With an entrepreneurial approach to lending, Skyridge Capital provides subordinated mezzanine loans and junior debt facilities to fulfil gap and transitional capital requirements. Our facilities are flexible to the needs of diverse projects and ventures, and solution orientated for asset managers and sponsors. Assessment Approval Placement CASE STUDY Junior Subordinated Debt Investment Range - 25 million to 250 million ($/ / ) Initial assessment against investment criteria Credit brief prepared Security & capital structuring Challenge An international private equity fund was sponsoring acquisition of an operating company in Australia. Funding was to be via a senior debt facility and balance sheet equity; however, due to constraints within the funds charter there was a shortfall within the capital stack to complete the transaction. Solution Skyridge Capital worked with the fund manager to structure a subordinated debt facility to infill the gap between senior debt and equity to complete the capital stack. Result The fund was able to close on the transaction while optimizing the capital stack to reduce their equity investment and boostnetirr and MOICreturns. Markets - Global mature and emerging markets Key Benefits - Optimize capital stack composition - Minimize equity contributions - LTC ratios up to 100% depending on security - Complex project funding facilities - Floating & fixed loans at low rates - Creative security structuring for complex deals Asset Classes & Sectors - Equity & debt funds (sector agnostic) - Project investments: - Real estate - Energy & power - Infrastructure - Natural resources - Private equity - Corporate finance General Criteria & Terms - Satisfactory equity contribution &/or security - Seasoned sponsor/asset manager experience Indicative terms issued Detailed internal analysis & borrower meetings Heads of Terms issued & accepted Satellite Offices Los Angeles Geneva Sydney Provisional investment committee approval Due diligence & conditions precedent satisfied London Facility approved by investment committee INDICATIVE PLACEMENT TIMELINE +44 (0) St. James s Square London SW1Y 4JU New York Facility agreement Capital allocated & deployed Facility monitoring & management months (212) Park Ave Manhattan NYC 10017

8 REVOLVING LINES OF CREDIT INVESTMENT PROCESS Skyridge Capital provides structured revolving lines of credit to bankroll seasoned asset managers and project sponsors with flexible cost efficient capital. Utilizing our uniquely creative approach to collateral and security structuring, we are able to provide large-scale credit lines under flexible terms that provide transactional clout, agility and surety to investment funds and project sponsors. Assessment Approval Placement CASE STUDY Credit Line Investment Range million to 1+ billion ($/ / ) Initial assessment against investment criteria Credit brief prepared Security & capital structuring Challenge A second tier film and television media financing fund had the opportunity to rapidly move into the top tier echelons of their market by securing a selection of highly coveted contracts with industry leading studios; however, the funds capital under management was insufficient to capture the opportunities. Solution Skyridge Capital worked with the fund manager to design a flexible revolving line of credit facility utilizing balance sheet equity as security. Result Do to the Skyridge Capital credit line the media financing fund was able to double its capital capability virtually overnight, thus giving the fund managers the fire power to secure the prime contracts and lift their market position with confidence. Markets - Global mature and emerging markets Key Benefits - Increase capital capability - Enhance transactional surety & speed - Optimize debt to equity ratios - Maximize equity IRR & MOIC returns - Capture market opportunities with agility - Creative security structuring for complex deals Asset Classes & Sectors - Equity & debt funds (sector agnostic) - Project developers & sponsors: - Real estate - Energy & power - Infrastructure - Natural resources - Private equity - Corporate finance General Criteria & Terms - Satisfactory equity contribution &/or security - Seasoned sponsor/asset manager experience Indicative terms issued Detailed internal analysis & borrower meetings Heads of Terms issued & accepted Satellite Offices Los Angeles Geneva Sydney Provisional investment committee approval Due diligence & conditions precedent satisfied London Facility approved by investment committee INDICATIVE PLACEMENT TIMELINE +44 (0) St. James s Square London SW1Y 4JU New York Facility agreement Capital allocated & deployed Facility monitoring & management months (212) Park Ave Manhattan NYC 10017

9 CONVERTIBLE DEBT TO EQUITY INVESTMENT INVESTMENT PROCESS As a principal investor and financier, Skyridge Capital has the rare discretionary ability to structure bespoke debt financing facilities that partially or wholly convert to equity investment. For selected funds, asset managers and project sponsors our convertible debt/equity investments offer the unique opportunity to shift significant capital from the right to the left side of the balance sheet; thus, dramatically decreasing debt liabilities while increasing assets under management in the process. Assessment Approval Placement CASE STUDY Convertible Debt to Equity Investment Range - 50 million to 1+ billion ($/ / ) Initial assessment against investment criteria Credit/investment brief prepared Security & capital structuring Challenge A niche asset manager had successfully launched and executed a series of opportunistic PERE investment funds, yet due to the sophisticated nature of the fund strategies had struggled to secure LP investor comfort to scale AUM to keep pace with market opportunities. Markets - Global mature and emerging markets Key Benefits - Enhance capital capability - Efficiently increase AUM - Transform balance sheet strength - Creative security structuring for complex deals Indicative terms issued Detailed internal analysis & borrower meetings Provisional investment committee approval Due diligence & conditions precedent satisfied Facility and investment agreements Capital allocated & deployed Solution Skyridge Capital designed a bespoke convertible line of credit facility that upon achievement of pre-determined milestones converted to LP equity across the assetmanagers active funds. Result The asset manager was given the unique opportunity to secure a significant increase in AUM with Skyridge Capital entering as a new anchor investor across their fund set; which in-turn, bolstered investor confidence to secure further LP investment from private investors. Asset Classes & Sectors - Equity & debt funds (sector agnostic) - Project developers & sponsors: - Real estate - Energy & power - Infrastructure - Natural resources - Private equity - Corporate finance General Criteria & Terms - Satisfactory equity contribution &/or security - Seasoned sponsor/asset manager experience - Approved investment/business plans - Agreed partnership structure Heads of Terms issued & accepted Satellite Offices Los Angeles Geneva Sydney London Investment committee approval INDICATIVE PLACEMENT TIMELINE +44 (0) St. James s Square London SW1Y 4JU Investment monitoring & management months New York +1 (212) Park Ave Manhattan NYC 10017

10 Satellite Offices Los Angeles Geneva Sydney London +44 (0) St. James s Square London SW1Y 4JU New York +1 (212) Park Ave Manhattan NYC 10017