In much of the world, commercial lenders are the dominant providers of project finance, corporate and municipal/local government debt. In a few markets such as the United States, the capital markets (the bond markets) provide the dominant source of debt funding within many of the sectors we focus on, including the infrastructure, energy & utilities, industrials, oil & gas and real estate sectors. Therefore, in most transactions that we advise on, the role of commercial lenders is an extremely important element of the overall financing transaction.
Commercial debt fundraising services are a complementary and an integral component of many of our comprehensive transaction advisory services mandates. At times, we may also serve as the lead lenders' advisor, which includes the provision or coordination of all relevant commercial, technical and legal advice to lenders in a particular transaction. Many DCS affiliate experts are former bankers, lawyers, corporate executives and financial advisors who possess decades of experience in structuring and executing commercial debt transactions.
Within the sectors and geographies that we cover, we maintain relationships with most of the major commercial banks and other commercial lending institutions in those markets. Accordingly, when serving our borrower clients, we can offer unparalleled insight and access for our clients in terms of lenders' criteria, requirements, expected terms, conditions and costs and potential suitability and interest in our client's funding project.
The following applications of commercial debt that we focus on within the sectors and markets the we cover:
As the "borrower side" debt advisor in the case of a project financing or refinancing, we will assist our client throughout the entire commercial debt fund raising process from identifying a list of potentially suitable commercial lenders to execution and closing of loan agreements. Typically, corporate, acquisition, lease or monetization/securitization financing arranged through a company's relationships may be much shorter and less onerous process. The following outlines the typical "borrower side" process that we provide under a commercial debt project financing advisory mandate.
In some project finance and development finance situations, commercial financing is also combined with categories of debt financing such cases where the financing structure also involves credit from Export Credit Agencies (ECA's), Export-Import Banks (EX-IMs), Development Finance Institutions (DFIs), International Finance Institutions (IFIs), capital markets (bond investors), governmental lenders and providers of providers of hedging instruments(derivatives counterparties). Particularly in the case of ECA/Ex-Im/DFI/IFI-linked financing there are specific structures available (such as "covered loan" structures, "B-Loan" and DFI/IFI-led loan syndication structures). In some cases, having multiple classes of lender in the financing stack can introduce unwieldy intercreditor issues. DCS advisor have a great deal of experience with multi-class debt structures and in favorably negotiating intercreditor agreements between multiple investor classes.
DCS advisors are able to provide commercial debt capital fundraising services on a stand-alone basis on behalf of public and private sector clients who are pursuing project financing, acquisition, refinancing/restructuring/workout transactions or monetization/securitization transactions. In most cases, as commercial debt capital fundraising will be only one element of a larger project delivery program, DCS will also be providing other complementary transaction advisory services in relation to other transaction elements. Our preference is always to provide such comprehensive transaction advisory services and coordinate all elements of the transaction, including project financing on behalf of our clients.
Under any commercial debt capital fundraising advisory mandate, DCS will draw from our vast global network of veteran industry expert advisor affiliates and our relationship consultants in order to assemble the most appropriate team to match the specific needs of the transaction at hand. This will always include leadership of DCS affiliate experts who possess decades of global transactional experience related to the specific sector and transaction type. In any commercial debt capital fund raising transaction advisory service mandate, our preferred role is always to serve as the lead project/program manager. Within this role we are also able to assist in the selection and procurement (or subcontracting) and management of other advisors, including local and international legal, technical, tax, commercial and due diligence advisors or other specialized advisors, as the specific transaction may require. To the extent that other third-party advisors are required, there are many value added advantages of allowing DCS to assist in the procurement of these advisors. First, DCS expert affiliates themselves possess many of the legal, technical, commercial and managerial skill sets and we are best positioned to determine which additional outside third-party skill sets are required and which firms or individuals should be hired in these roles. Secondly, commercial debt capital fundraising projects are often very complex undertakings, requiring the management and coordination of many simultaneous workstreams. DCS advisors are experts inproject and program management services and are ideally suited to manage and coordinate a multi-dimensional advisory team most efficiently and effectively.
Complementing our commercial debt capital fund raising advisory services, DCS advisors offer the following complementary advisory services that may be applicable, dependent on the transaction situation.
DCS experts provide comprehensive commercial debt capital fundraising advisory services in the following sectors that we specialize in. Please click on the below links to learn more about the sectors that we cover:
DCS experts provide comprehensive commercial debt capital fundraising advisory services to the following categories of clients: