A private placement of senior debt provides a stable source of debt capital for upper-middle market and large corporate borrowers. These private lending placements offer several specific advantages over traditional bank financing. Private placements help diversify funding sources beyond a company’s current credit providers, helping to expand the credit availability for continued growth.
Additionally, a private placement of senior debt offers long-term, fixed rate financing typically not available in the traditional bank market. Private placements can be individually negotiated and structured with significant flexibility and low upfront costs when compared with public debt issues. They are typically structured with 7-15 year maturities, flexible amortizations and fixed interest rates at a spread over U.S. Treasury yields.
Is a private debt placement the right financing strategy for your business? UMB Capital Markets Group can help you find out.
Questions? For more information, please contact us via phone or e-mail.
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