Structured Vehicles
In certain instances non-investment grade companies or the smaller middle-market companies can monetize a particular asset on their balance sheet. Assets such as account receivables, contracts, lease receivables and other financial assets can be utilized to raise funds at very attractive rates.
Typically these structures involve the sale of a specific pool of non-cash financial assets to a bankruptcy - remote entity established as a special purpose corporation ("SPC"). The SPC funds the purchase of the assets by issuing debt, which is priced based on the value of the pool of assets. Asset securitizations have the added benefit of being off-balance sheet and non-recourse to the company.
Trenwith's private capital professionals have extensive experience in constructing such financing and accessing certain capital not always available to middle-market clients.