AMCG Strategic Capital has applicability in financing of growth companies, buyouts, acquisitions, as well as in leveraged financings and refinancings, recapitalizations, and other situations.
Other examples may include pre-IPO mezzanine placements, going-private transactions, SOE privatization financings, and mezzanine PIPEs.
AMCG tailors each transaction to the issuer and circumstances, and does not employ a single ˇ°cookie cutterˇ± approach.
The following are several representative transaction structures (simplified for purposes of illustration).
| Leveraged Financings, Refinancings, Recapitalizations, Shareholding Restructurings:
- AMCG Role: Provides capital to support transaction which enables shareholders to reduce amount of equity required for transaction, and increase potential returns.
- Representative Structure: AMCG provides structurally subordinated debt with equity warrants to HoldCo, with proceeds downstreamed to OpCo.
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Buyouts and Acquisition Financings:
- AMCG Role: AMCG may assist private equity firms and other acquirers to increase significantly their potential returns, enhance their flexibility, and/or strengthen competitiveness of a bid.
- Representative Structure: 2 or 3-tier structure involving HoldCo(s) and OpCo, with AMCG-provided capital structurally subordinated to senior debt (usually from commercial banks). AMCG provides senior debt to upper HoldCo, and receives equity warrants in HoldCo (or other entity) or other form of equity participation. Part of AMCG debt return may comprise PIK interest.
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