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Our Work

Creative. Committed. Successful. That’s how we work.

  • Example Case Study 3

    Private Debt Financing

  • Sector

    Energy industry

  • Task

    Our client, a utility company , was looking for attractive funding for a 100 million euro project. As its largest shareholder wanted to avoid capital dilution, it was out of question raising funds with a convertible equity or new equity injection. DragonKnight Advisors acted as exclusive financial advisors.

  • Implementation

  • We verified the quotes our client received from its lending banks and discovered that these were grossly overpriced in comparison to current market spreads available for client with a similar credit profile. In our opinion, our client should be a shadow single A rating and the fact that the funding was intended for an energy project, we thought it should be possible to raise funds from the Schuldschein market in Germany. We advised our client to isssue a private note uncovenanted rather take an expensive bank loan with covenants.

  • Our client was surprised by this recommendation as none of its banks had ever mentioned this product. The simple concept and the attractive costs, far lower than those for issuing a corporate bond, impressed and convinced our client. In the end a direct five-year loan agreement was concluded with just one investor, a large German insurance society. This simple structure saved our client a considerable amount of time and money.

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