Ashton Stewart

Leveraging decades of experience, our Capital Markets team links the firm's Investment Banking clients with institutional investors, thus providing issuers a successful capital formation solution. Our professionals underwrite and place new issues of securities, while providing market insight during the structuring phase and timely execution in the book building and issuance phase of each transaction. We have the capability to structure a transaction creatively, while building capital structures that are appropriate for our clients and the markets. Among other considerations, we evaluate potential transactions based on our clients' sensitivity to dilution, risk, timing and external or competitive issues.

Senior Debt

Senior debt is typically the first choice for most companies since it is the least expensive capital. Sometimes situations occur when a company cannot borrow the amount it needs to grow or when a decrease in valuation may cause a company to be overleveraged. We work with our client's current senior lender, find alternate financing sources, or create syndicates to provide senior finance. Our Capital Markets professionals are in continual contact with debt providers who contribute intelligence on each lending institution's portfolio make-up, risk profile, lending criteria and requirements. Senior debt can come in various forms including secured and unsecured bank loans, long-term fixed coupon notes, securitized debt obligations and other structured vehicles.

Corporate Revenue Bonds (High-yield Debt)

These bonds provide investors and issuers alternative security structures that derive investor returns from issuer top-line revenues. They are revenue participation securities that could substitute mezzanine debt or equity issuances, and provide current income and liquidity for the investor. The non-dilutive characteristics of the security structures are appealing to companies that wish to retain ownership control. These features, coupled with a variable cost of capital and the absence or mitigation of governance controls, make these bonds a win/win for companies who don’t want the pressure of a forced exit; while presenting a way to attract investors who want to avoid liquidity events and seek current income.

Mezzanine Debt

The universe of mezzanine and subordinated debt (high-yield debt) providers is populated with institutions that are highly specialized with each having very specific lending criteria. Navigating this world can be frustrating for middle-market companies who do not maintain constant contact with this array of funding sources. Our Capital Markets maintains regular dialog with these lenders, and our professionals are experienced in structuring mezzanine debt, which may include warrants as well as other forms of equity kickers. Each debt instrument is tailored to meet our clients' financial requirements while creating the most flexible terms possible at the lowest cost of capital.

Equity

Our Capital Markets professionals serve the needs of the Investment Banking clients by originating, structuring and placing equity securities with private investor groups. These professionals work in conjunction with the industry bankers to address each issuer’s needs on a case by case basis. We are committed to placing the right type of institutional investor and appropriate security with each of our clients. We maintain a large network of relationships with institutional investors including public money managers, private equity, venture capital, family offices, insurers, hedge funds, specialized PIPE funds, venture capital, private equity, sovereign wealth funds, mezzanine and strategic investors. These relationships enable us to match our clients with the appropriate sources of capital.

Structured Vehicles

In certain situations, non-investment grade companies or the smaller middle-market companies can monetize a particular asset on their balance sheet. Assets such as account receivables, contracts, lease receivables and other financial assets can be utilized to raise funds at very attractive rates. Typically, these structures involve the sale of a specific pool of non-cash financial assets to a bankruptcy - remote entity established as a special purpose corporation ("SPC"). The SPC funds the purchase of the assets by issuing debt, which is priced based on the value of the pool of assets. Asset securitizations have the added benefit of being non-recourse to the company. Our Capital Markets and Investment Banking professionals have extensive experience in constructing such financing and accessing certain capital not always available to middle-market clients.