Replace financing that no longer fits with capital structured for what comes next.

When a maturity date is approaching and renewal terms do not fit the business, replacement capital has to be arranged before the facility comes due. Starting early leaves room for diligence, documentation and an orderly closing.

A borrowing base that has tightened, or a facility whose structure no longer matches how the business operates, can constrain liquidity even when the company’s assets are sound.

A lender may exit a segment, change its underwriting expectations or reassess a borrower as the business changes. Any of these can force a search for a lender whose approach fits the company.

Several facilities, overlapping liens, prepayment terms or restrictive covenants can make a simple renewal hard. Sorting out the existing structure is often the first step toward a cleaner one.

Refinancing is one of the situations Great Elm finances. Whether a given facility can be replaced depends on the borrower’s collateral, the existing obligations and the structure that fits the business, so we evaluate each opportunity individually.

Existing debt is generally repaid at closing, and existing liens have to be released or otherwise addressed, subject to the current lender’s payoff and consent requirements. The specifics depend on the credit documents, and a borrower’s counsel should review them.

Sometimes. A receivables-backed revolver, a secured term loan and a unitranche structure work differently, and the right one depends on how the business uses capital and what collateral it has. We would discuss the options rather than assume one.

Typically a schedule of existing debt, recent financial statements, collateral reporting, the current loan agreements and a description of what the business wants the new facility to accomplish.