When substantial return opportunities are present and the equity market conditions are either not accommodating or too expensive, increasing the company's leverage can make sense.
Deschutes Capital can structure and arrange a leveraged financing, whether with a subordinated loan, unitranche loan or risk management tools, based on your company's historical cash flow from operations or EBITDA, term structure and quality of assets, future business opportunities and equity position. For short term assets, an accounts receivable line of credit, working capital line of credit or inventory loan can be tailored to meet your company's specific needs, whether seasonal or over a few years. We can also employ risk management tools, such as, credit insurance and inventory management, when appropriate.
If you are interested in leveraged financing and the level and stability of your company's historical cash flow from operations or EBITDA, and projected return on equity ( ROE ) are sufficient, a cash flow subordinated loan may be available. Additional considerations are the business cycle risk of your industry, seasonality of your business, and credit risk profile and concentration of your company's customer base.