Many companies took on leverage assuming growth and or near term equity financing. Both lenders and companies have begun to feel uncomfortable with the amount of debt undertaken.

Our team of investment professionals can work with the lender and the company to find a win-win-win solution. Typically we will purchase the note from the lender then create a convertible equity security, removing a number of covenants and interest payment features that impact the company’s operational capabilities.

The company swaps harmful debt for less expensive capital and an interested, well capitalized new equity holder.