Debt Portfolio Advising

Loan and collateral analysis

Provisions and conventions within loan documentation can have significant economic implications for clients as they pursue financing structures and compare term sheets.  Cardea Partners highlights key financial negotiating points on behalf of our clients, working with its attorneys, to produce visible cost savings in the negotiations.  Whether you are negotiating a collateral substitution or finalizing documentation on a new or existing financing, expert advice on deal structuring is often the difference between your organization being nimble in the future or captive to a bank facility.  Careful analysis of the loan structuring can identify any instances of opaque lender revenue provisions or favorable terms for them.  These provisions are often negotiable.  Deciding between lenders is never as simple as just comparing loan spreads, and Cardea can help with the cost/benefit analysis.

Counterparty analysis

A previously underappreciated risk in the derivatives marketplace was that of hedging counterparty exposure, which can often be significant.  With countless failures on the part of financial institutions during this cycle, identifying and mitigating counterparty risk and being aware of collateral requirements for both parties is essential.  An over-the-counter derivatives contract is only as strong as its incumbent parties’ ability to meet their obligations.  If multiple hedges and loans are involved, counterparty diversification is just as critical as diversification of your investment portfolio.  Cardea identifies sound and strong counterparties for our clients and make recommendations for exposure diversification.

Debt refinance structuring

Are you contemplating a refinance on an existing debt facility that has a derivative?  Does this refinance involve adding new debt and a change of tenor?  Cardea Partners provides the analysis necessary to make informed decisions on new financings, identify the true costs of expunging previous facilities, and gauging cost and risk in the refinance offerings.