Master Note Facility.

A financing vehicle that allows companies to lock in capital availability by providing quick access to medium to long term, fixed rate debt financing.

Characteristics.

This multi-year arrangement is a cost effective way to create additional debt capacity that can be used for your company’s future capital needs and to complement traditional bank financing.

A Master Note Facility established with Private Capital Investors is initially put in place for 2 to 3 years, with optional renewals. We work with you to underwrite and complete the legal documentation upfront. The Facility allows for multiple draws over its life. When you decide to draw under the Facility, you can do so in a matter of days, with each draw tailored to meet your company’s specific needs. Draws take the form of Senior Debt.

Typical uses.
  • Refinancing of bank debt
  • Funding capital expenditures
  • Funding merger & acquisition activity
  • Recapitalizing your company’s capital structure
Transaction structure.
  • Size: Typical Facility size from $50 million to $250 million
  • Initial Costs: Typically a set-up fee and legal costs
  • Commitment Fee: No commitment fees on undrawn amounts
Draws under the Master Note Facility.
  • Size: Typical draw from $10 million to $150 million
  • Maturity: Typically from 5 to 15+ years, providing longer maturities than traditional bank financing
  • Repayments: Individually tailored to meet your company’s needs, including bullet maturities or customized amortizations
  • Documentation: Similar to bank lender documentation requirements
  • Currency: Predominantly USD with ability to provide select foreign currencies (€, £ and CAD)

Note: Transaction characteristics and structure may vary.