Refinancing and debt advisory are related
— but distinct.
Debt advisory covers the full lifecycle of raising debt — from the first facility to acquisition financing. Refinancing and recapitalisation is a specific mandate type: the business has debt in place, and the question is whether that debt is still the right structure, with the right lender, on the right terms.
The two mandates share a lender market, a financial modelling discipline and a process methodology. But refinancing has a specific characteristic: there is an existing relationship with a lender that must be managed carefully throughout, and a maturity or covenant profile that sets the timeline.
We advise on refinancing as a standalone mandate and also as a component of larger recapitalisation transactions where the debt structure is being reset alongside a change in ownership or equity position.
Maturity approaching
The existing facility has a term date within 12 to 18 months. A refinancing process needs to be underway before the window closes — not started when it arrives.
Covenant breach or test failure
Trading is below covenant levels. The lender relationship is under strain. Options include a waiver, an amendment, a full refinancing or a lender change — all require independent assessment first.
Facility no longer fits the business
The business has grown, diversified or changed its operating model. The original facility was structured around a different business. The terms, the lender type and the quantum are all misaligned.
Margin and fee structures are expensive
Market conditions have moved since the facility was put in place. The current margin and arrangement fee structure reflects a risk profile the business no longer carries. Better terms exist in the market.
Ownership has changed or is changing
A partial exit, secondary transaction or management buyout has changed the ownership structure. The debt needs to reflect the new stakeholder position and objectives.
Balance sheet requires reshaping
The debt-to-equity ratio is wrong for the business’s current strategy — too leveraged to execute, or underleveraged relative to what the business can support and what equity holders want.Balance sheet requires reshaping.
Timing matters
A refinancing process run with 18 months to maturity achieves better terms than one run at six months. Lenders price the urgency. Starting early is a negotiating advantage, not caution.
Specific outputs at each stage.
- Current facility review with a plain assessment of where the business stands relative to its lender assessment — debt versus equity versus hybrid, with the trade-offs set out clearly
- Refinancing options analysis — amend-and-extend versus full refinancing versus lender change, with costs and trade-offs set out
- Financial model updated to reflect the refinancing or recapitalisation structure under consideration
- Lender information memorandum prepared to refinancing market standard
- Comparative term sheet analysis across refinancing proposals received
- Completion management from credit approval to drawdown
