A Lender to Carry Your Client Back to a Bank
When a client needs to move on from its current lender, or out of a DIP facility, Provida provides the financing to carry it until it is bankable again. We work with special loans teams, advisors and restructuring professionals to make the transition orderly.
- Facilities up to $5,000,000Sized to the business and what it needs through the transition.
- Built for the transitionMost exit facilities run 2 to 3 years.
- A planned return to a bankThe goal is a company that is bankable again.
- Coordinated with the outgoing lenderWe work with the bank's team on timing and payout.
From the Outgoing Lender Back to a Bank
Introduce the Client
Tell us about the business, the current lending relationship and the timeline.
Review the Business
We look at the financial statements, the forecast and the assets that support the facility.
Take Out the Lender
We repay the outgoing lender or the DIP facility and put the new facility in place.
Return to a Bank
We work with the company on becoming bankable again, and on the refinancing when it is ready.
Special Loans Teams, Advisors and Restructuring Professionals
Bank transitions. When a bank decides a client no longer fits its criteria, the business is often still sound. It needs time, and a lender that will work with it. We give the bank's special loans team an orderly exit and give the company a path back to conventional financing.
After a restructuring. When a company emerges from a CCAA proceeding or a BIA proposal, the DIP facility usually needs to be refinanced. We can provide that exit financing and fund the next stage.
What We Look At
- A business that can recover
- A realistic forecast
- Assets that support the facility
- A clear path back to conventional financing
Exit Financing with Provida
What situations do you take on?
Companies leaving a bank relationship, and companies coming out of a restructuring that need to replace their DIP facility.
How long does an exit facility last?
Typically 2 to 3 years. The term is set around how long the company needs to become bankable again.
How do you work with the outgoing lender?
We coordinate the timing and payout with the bank's special loans team, so the transition is orderly for everyone.
How is a facility secured?
By the company's assets. We look at the business as a whole, not one type of asset.
What does it cost?
Exit financing is priced for the risk involved, and the company sees the full cost before it signs. The aim is to move it to lower-cost financing as it becomes bankable.
What do you need to assess a file?
Recent financial statements, a forecast, the current lending position and the timeline.
Have a Client Who Needs a New Lender?
Tell us about the company and the timeline. A member of our team will contact you within one business day.