Client Overview

  • The Client is a professional services firm which had been purchased out of administration several years earlier, creating challenges in attracting mainstream finance
  • The Client had a significant receivables portfolio which the Client was able to leverage as collateral

Facility Overview

  • GCI created a structured lending facility which provided a $10 million of capital, secured by the Client’s receivables portfolio
  • The facility was structured to leave the Client’s existing lenders in a first ranking secured position with respect to the rest of the Client’s assets
  • Upon the onset of COVID-19, GCI expanded the facility to $20 million by broadening the eligible collateral requirements

Commentary

  • Despite the receivable counterparties technically being low-quality obligors, GCI was able to look through to the high-quality ultimate counterparties and give credit to this underlying risk in structuring the facility

Providing Value Added Credit

Insights

By analyzing the Client’s accounts receivables as if it was a loan book, GCI was able to draw the Client’s attention to several performance characteristics that assisted the Client in more effectively managing their receivables.

Speed

In both the initial transaction and the subsequent expansion, GCI exceeded the Client’s pressing deadlines.

Flexibility

GCI engaged in extensive discussions and documentation with the Client’s existing lenders to create a tailored solution that allowed for both parties to remain in the transaction side by side.

Network

In closing the transaction, GCI was able to leverage its relationship with the Client’s existing senior lenders to help secure the required approvals efficiently and effectively.