As a provider of patient debt capital, we form strong partnerships with our borrowers.
We typically become a trusted advisor as well as a financing partner. We are reliable and dependable and take pride in our ability to provide quick, meaningful answers and in our speed of execution.
We are attracted to companies with strong competitive positions in well-defined niches. They will be cash flow positive and profitable, poised to grow with our financing support.
Our preferred loan size is $10 million to $35 million, although we can also complete larger transactions.
We are not driven by formula or scoring systems, rather we take the time and trouble to appreciate the unique characteristics of each business, genuinely understand the nature and details of the transaction, and devise situation-specific solutions that work.
Uses of Term Debt
- Refinancing of core bank debt to lock in interest rates
- Increase free cash flow for growth purposes
- Finance asset acquisitions
- Finance plant expansion / modernization
- Acquisition financing
- Project financing
- Management buyouts
- Fixed rate
- Fixed term (5 to 10 years)
- Bullet or amortizing – suitable to borrower, industry and structure
- Senior secured
- Canadian dollars
- Priced at a spread over equivalent term Government of Canada Bonds
- Minimum loan – $10,000,000
- Suitable borrowers will have investment grade type of credit metrics
- Profitable track record + positive EBITDA
- Strong management & defined market / strategy
- Standard leverage and strong debt service capability
Benefits of Term Debt
- Cash flow certainty from locking in interest rate for long-term and predictable payments in an environment of interest rate volatility
- Fixed interest rate loans build a simple internal hedge for floating rate exposure
- Loan approved internally (IAM Private Debt Group writes the cheque)
- Large hold limit and strong co-investors means no syndication required
- True term loan – not a demand loan with term repayment features
- No review / renewal fees and associated costs
- No swap costs
- No warrants or equity incentives
- No syndication cost