DEBT MARKET UPDATE SECOND QUARTER 2019

EXECUTIVE SUMMARY

Leveraged lending in the first half of 2019 witnessed a modest rebound from a choppy end to 2018 as uncertainty about the future of the economy continues to raise concerns.

Despite current and potential trade wars on multiple fronts, weakening macroeconomic data and interest rate choppiness, pricing and terms marginally improved in favor of issuers in Q2.

The ample capital supply / limited deal flow imbalance continues to cause a unique window where senior and alternative lenders have migrated down to the lower middle market in search of deal flow, providing aggressive and unique financing availability.

Bridgepoint expects debt markets to continue to remain flat throughout the rest of 2019, due to the excess supply of private debt capital. We advise company owners to act now to strengthen their balance sheets while the markets remain favorable.

Leveraged Finance Options / Scenarios

  • Dividend Recapitalization
    Sizable cash dividend to the owner(s) while maintaining 100% ownership of their Company

  • Flexible / Reduce Debt Service
    With low amortization (20-100 year) / required debt service, institutional debt enables higher flexibility and cash flow investment into growth

  • Acquisition / Growth Financing
    Capital to allow the owner(s) of the company to pursue aggressive growth initiatives and / or buyout of select shareholders

  • Committed Capital Partner
    Partner to provide strategic guidance, purchasing power and additional capital for growth, including acquisitions, or liquidity

What Are Your Goals?

Determine the best option to help you realize your goals

Choose the Option that fits your goal

Need Liquidity

  • Partial / Full Monetization - Take “Chips Off the Table”
  • Exit / Succession Planning - Staged Exit
  • Take Care of Next Gen / Mgmt Team - Planned Transition
Need Capital

  • Eliminate Personal Guarantees
  • Growth - Organic / Acquisitions
  • Buyout of Other Shareholders

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