A Private Placement is a financing transaction between a company and a limited number of institutional investors based on the sale of bonds, stocks, securities or other investments directly to a limited number of investors.
Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds.
A private placement is different from a public issue, in which securities are made available for sale on the open market to any type of investors.
Private placements are exempt from being registered, creating a prospectus or getting a credit rating from a bond agency, in case of bonds selling. They constitute a less expensive placement and a good opportunity to raise capital.
The issuance of bonds and hybrid instruments allows entrepreneurs to attract capital without giving away equity. The issuance is structured through a securitisation vehicle. The Bond issuance is then subscribed by potential investors who then receive a yield which depends on the risk and value of the underlying company or assets
Montbards helps in structuring bonds and issuing bonds and hybrid instruments for smaller and medium-sized enterprises as well. It used to be possible to issue bonds only for capital needs in excess of EUR 50 million. Montbards offers solutions from as little as EUR 1 million and with lead times of several weeks only.
Our services includes:
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Private Placement advisory:
– Analysis of company capital structure alternatives and company debt capacity
– Definition of the best structure in order to achieve our client’s objectives and regarding costs, financing sources and investors
– Preparation of the financing memorandum
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Securitisation undertakings advisory
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Securitisation vehicle set up
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Securitisation vehicle domiciliation, administration and accounting
