Kilgour Williams Group assists corporations and institutions to raise debt financing. This financing may take the form of plain vanilla loans but KWG also favours the use of structured finance techniques as an efficient method for companies to raise funds while providing greater security to the lender. These may include elements of:
- Off-balance sheet treatment achieved by true sale to a dedicated Special Purpose Vehicle (SPV)
- Security perfected to the SPV
- Senior debt supported by equity and/or junior funding
- Predefined cash flow ‘waterfalls’ based on seniority in the capital structure
- Isolation of the assets being funded from the operating risk of the corporation
- Performance measures put in place to forewarn of and remediate credit risk
KWG recognizes that the securitization of poorly-understood assets in poorly-conceived, unstable structures was a significant contributor to the Credit Crisis of 2007-08. However, we assert that there continues to be a role for these techniques when appropriately and properly applied.