Insights 20.3.20 Authors: Philip Bird, Pablo Jorge

Corporate Finance: COVID-19 Debt Advisory

Insights 20.03.2020 Authors: Philip Bird, Pablo Jorge

The COVID-19 pandemic means that companies will be increasingly reliant on, and need to access external debt finance in order to ease financial pressures that they will inevitably face.

Our Corporate Finance team at CBW specialises in capital raising transactions and has launched an initiative to assist businesses through these difficult and uncertain times.

As you are aware, Chancellor, Rishi Sunak announced on Tuesday (17th March 2020) that the Treasury will give out £330 billion – the equivalent of 15% of the UK’s GDP – in state-backed loans and £20 billion in other aid, to protect firms facing losses as a result of the COVID-19 pandemic.

The so-called ‘Coronavirus Business Interruption Loan Scheme’ will be available in the week commencing 23rd March 2020 and is amed at helping companies pay salaries, rent and buy supplies.

It will be provided by the British Business Bank through participating providers and further details on available products, terms, eligibility and how to apply can be found here. We can help you through the application process if required.

However, eligibility criteria may preclude businesses from raising the total capital required. Our Corporate Finance team have access to alternative capital providers and will be able to help clients raise the maximum possible amounts for their businesses.

Whether your business qualifies or not for any state or non-state funding, our Corporate Finance team will be able to assist throughout the capital raising process by:

  • Reviewing your company’s existing capital structure and devise an optimal solution for its future funding requirements;
  • Negotiating with your existing lender/s to alleviate the burden of debt repayments;
  • Preparing any documentation (if new funding is required) providing summary commercial and financial information;
  • Helping you understand the different capital providers and the advantages and disadvantages of their underlying product offering, including the British Business Bank’s;
  • Managing the funding process including approaches to potential funders, meetings and negotiations with these, supervision of any due diligence process and advise in relation to legally binding loan facilities documentation;
  • And ultimately, ensuring that you get the best terms for the optimal structure that meets your needs.

We are here to help so please contact a member of our Corporate Finance team to discuss your funding requirements