$10m Logistics MBO (Venture Debt)

Logistics company who has a strong and stable earnings history was looking to transition ownership to the current management team. Value of the company was north of $10m. Traditional banks were unwilling to provide funding for a share buyback in a context where there was no collateral to support the debt (assets held via operating lease). The management team who were acquiring it had limited means of injecting further equity and did not want to put personal guarantees/homes up in support. The Debt Stream team worked with the management team to help them put together a package that was acceptable to the exiting shareholder. This included a combination of specialized debt, convertible notes, and earn out provisions.


Venture Debt

  What is Venture Debt It is a debt instrument to a rapidly growing company that would not otherwise qualify for traditional loans. The debt has a reasonably high interest rate (10 to 15%) and has a small warrants package attached which provides the debt provider the option to purchase equity at a pre-agreed valuation […]

Australian Recession in 2019?

Donald Trump, 100-year drought, Royal Commission, Kim Jong Un, Trade Wars, Climate Change – this is all starting to sound like Billy Joel’s famous song “We didn’t start the fire”.  Every day the papers tell a new tale of woes, a new set of threats on the horizon. Is this just background noise that has been “always burning […]