Private Investments Debt
Benefits of private placement
- Size flexibility,
- Long maturities possible,
- No rating required,
- More structured operations possible (indexations, currencies, coupons...),
- In French law and in Loan format,
- No advertising (in theory),
- Customized documentation on the basics of bank credit
Type of investors
They traditionally fall into three categories:
Thought Leader Investors
- Tickets between €30M and €150M
- Set the "tone" for an operation
- Represent a dozen actors
Medium-sized investors
- Tickets between €15M and €30M
- Less aggressive in pricing & covenants
- Represent about twenty actors
«Follower » investors
- Tickets between €1M and €10M
- Follow the leaders' trend
- Represent about twenty actors
Our investor references
Our expertise
They traditionally fall into three categories:
The market provides transactions tailored to the specific needs of issuers in terms of maturity, size and structure
- Multiple tranches with no minimum size
- US dollar, Euro or GBP
- « Off-the-run » maturities
- Delayed draws and shelfs (undrawn envelopes)
The US PP market represents a prime segment for issuers whose needs are « too small » to access the bond market with a benchmark size of $500M/€500M
Long/very long maturities remain the preference of investors (71% at 10 years and beyond)
Our model
- Caneyan Finance has developed an original approach called « Reverse Private Placement » which allows to avoid the cumbersome and risky execution associated with traditional private placements
- To do so, Caneyan relies on a historical relationship with some major private equity investors
- Our investors, looking for diversification and yield, and in a situation of excess liquidity, have developed a strong interest in bilateral interest in bilateral transactions that allow them to build a real relationship of trust with issuers in the framework of issuers in the framework of long-term partnerships
- The bilateral approach allows the issuer to obtain a "tailor-made" transaction, with full discretion and without execution risk
Sequencing
- Study of market conditions and initial contact with potential investors
- Preparation, jointly with the company, of the document entitled "Company's Profile" (update of the credit profile, review of market shares, etc.). This Info Memo must tell a "credit story" whose content and form meet the specific expectations of this investor population
- Estimation of the financial conditions of the Transaction (interest rate, nominal amount of the issue and maturity), and drafting of terms and conditions (« Term Sheet »)
- If interest is confirmed on acceptable terms, a meeting will be organized with the company's management
- Investors' agreement to the proposed terms
- If the conditions of the Transaction summarized in the Term Sheet are approved by the Company, Caneyan Finance will assist and accompany the Company in its negotiations with the selected investors
- Pricing of the Transaction
- The Transaction will be completed subject to the completion of « due diligence » as defined in the Term Sheet
- Funding and closing
Our services
We propose a partnership to help you in your search for financing, private placement.
