A mid-sized multinational company required a refinancing solution to manage its existing debt, including a convertible bond approaching maturity. While supported by strong cash flows, the company's debt repayment structure created financial strain. A structured debt strategy was implemented to ensure long-term financial stability and maintain investment capacity.
Challenge
The company faced an uneven financial situation due to an inconsistent debt reimbursement plan and high financial interest costs. Without restructuring, the existing indebtedness would have led to periodic financial distress, potentially impacting operations and future investments. A refinancing strategy was necessary to balance debt repayment with ongoing business growth.
Implementation
A detailed financial analysis was conducted to determine the optimal capital structure for sustainable debt management. Various refinancing scenarios were explored in collaboration with institutional investors, evaluating different financial instruments suited to the company’s needs.
To ensure flexibility and financial sustainability, a structured debt solution was designed, incorporating a mix of financial facilities. This approach provided a stable reimbursement plan over a 10-year period while preserving liquidity for operational investments.
Achievements
By adopting a structured debt strategy, the company successfully refinanced its obligations without compromising financial stability. The tailored mix of senior debts and working capital lines allowed for balanced reimbursement terms aligned with cash flows. With a more sustainable financial structure in place, the company was well-positioned to manage debt efficiently while continuing to invest in future growth.
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