A European private company had an opportunity to substantially grow its revenues in the U.S. by developing its distribution channels and introducing selected new product offerings for the U.S. market.
The Challenge
The private company had reached its credit limits with its European banks and the company's shareholders were not in a position to infuse significant amounts of new equity capital into the business.
Our Strategy
We utilized the private company's base of assets in the U.S. market as a basis for sourcing new capital. We presented a proposal to the private company's European lenders which gave them comfort as to the credit quality of their existing loans, based on the company's European operations, and convinced them to allow for a release of security on the U.S. assets. We next identified financial institutions in the U.S. market that would provide loans against the U.S. assets without recourse to the parent company's assets or cash flows.
The Result
The European private company was able to establish a new source of funding for its U.S. operations at reasonable costs of capital.
Case Study 2
The Opportunity
A family-owned Brazilian road construction company wanted to participate in a state government sponsored bidding process to operate toll roads for 20 years that included a revenue sharing arrangement with the government.
The Challenge
The family company had no experience in bidding on large projects, no experience with toll roads, nor did it have access to capital to submit a bid.
Our Strategy
With our contacts in the U.S. capital markets we arranged a consortium, including international experts in toll road operations and financing, to assist the company in submitting bids for those state roads it deemed most attractive. Some of the key players we identified and added to the consortium were critical to the project's success.
The Result
Our client was successful in winning the largest portion of roads (based on km) in the Brazilian state. The project was a major success, and our client is now a large, recognized toll road operator in Brazil whose original business was a fraction of what it is now.
