Debt Advisory

Structure the right facility. Reach the right lenders. Complete.

K3 Deal Advisory advises on debt raises across acquisitions, refinancing, growth capital and shareholder situations. We run the lender process — from structuring through to drawdown — so management time is spent on the business.

Why process matters

Most debt processes do not fail because a business cannot support the debt. They fail because the approach to lenders is underprepared. The information memorandum does not hold up. The financial model has not been stress-tested. The lender selection is too wide or too narrow.

A well-prepared, selective approach to the right lenders produces faster credit approval, fewer information requests and better terms — because lenders are not pricing in process uncertainty.

Funding situations we advise on

Acquisition financing. Structuring a debt package to support an acquisition — leverage quantum, facility type, intercreditor terms — from initial assessment through to drawdown on completion.

Refinancing. Replacing an existing facility on improved terms, extending maturity or moving from one lender type to another as the business profile has changed.

Growth capital. Raising a term loan or revolving credit facility against a credible expansion plan — new sites, equipment, working capital headroom or additional investment.

Covenant reset. Where an existing facility has a covenant testing problem, we model the position, assess lender options and structure a reset before it becomes a formal default.

Shareholder recapitalisation. Restructuring the balance sheet following a partial shareholder exit, secondary transaction or ownership reorganisation.

PE portfolio debt. Advising private equity houses and their portfolio businesses on acquisition facilities, bolt-on debt capacity and periodic refinancing through the hold period.

Debt products

We advise across senior term loans, unitranche facilities, mezzanine and second-lien debt, asset-based lending, invoice discounting, stock and inventory finance, hire purchase, commercial mortgages and revolving credit facilities — including combined structures where the optimal solution uses more than one facility type.

What the process looks like

Assessment. We review the business, the existing capital structure and the funding objective. We establish what lenders will lend before any approach is made — not after.

Financial modelling. We build or stress-test the financial model against leverage, EBITDA basis, debt service, covenant headroom and downside scenarios.

Lender approach. We prepare an information memorandum and run a targeted approach to the lender market — selective, prepared and structured to the institutions best placed to complete on your terms and timeline.

Term sheet negotiation. We manage competing indicative terms, compare them on a consistent basis and negotiate the material points: margin, arrangement fees, tenor, covenant set, drawdown conditions and flexibility provisions.

Completion. We manage the legal and conditions-precedent process through to drawdown, coordinating advisers and managing lender requirements so management time is protected to the end.