Direct Lending

Direct lending is an avenue for companies like yours to access capital as an alternative to the syndicated loans or senior floating-rate capital traditionally provided by banks. Direct lending loans are provided by “non-bank” lenders, such as institutional investors.

Direct lending loans are primarily first lien, senior secured floating-rate loans, but can also be second lien, revolvers, or accordion/delayed-draw facilities. They have flexible amortisation profiles and final maturities that usually range from 5 to 6 years.

The direct lending market has become a permanent source of capital for borrowers. It is largely a leveraged buyout-driven, sponsor-led market, but relies on private placement-style credit and terms underwriting.

Our lenders target the middle market, which is typically defined as companies with EBITDA of $10 to $50 million. Our regional office network enables companies to access growth capital globally, across the U.S., Canada, UK, and Europe.

Direct Lending Investment focus

  • Middle-market companies with attractive growth prospects and positive cashflow
  • Typically, EBITDA of $10 – $50 million
  • Generalist industry focus with an emphasis on business services, consumer products and services, distribution and logistics, food and beverage, energy, packaging, chemicals, and niche manufacturing companies
  • Management teams and owners with an economic stake in the company’s success

Typical uses for Direct Lending

  • Recapitalisations/dividend recapitalisations
  • Growth Capital
  • Acquisitions
  • Shareholder buyouts
  • Generational transfers
  • Non-sponsored management buyouts
  • Sponsored leveraged buyouts
  • Cross-border financing’s

Direct Lending Typical size

  • $25 million – $400 million
Direct Lending Issuer benefits
  • Ability to do multi-currency, cross-border transactions
  • Flexible prepayment terms
  • Relationship-focused capital provider
Direct Lending Structural characteristics
  • Floating rate
  • Revolvers, accordions, and/or delayed-draw term loans
  • 1%-10% yearly amortisation with an excess cashflow sweep
  • Typical maturities of 5-6 years

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    Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Lombard Loans, Single Stock Loans, Margin Stock Loan and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.

    Direct Lending February 5, 2020