Sealing the deals
HMT established its debt advisory business in September 2015. Led by partner Chris Gow and associate director Adrian Howells, the 12 months to July 2017 were excellent for the franchise with nine deals completed and c£60 million debt arranged.
In addition, another two deals are close to completing, so a busy summer is anticipated.
HMT has completed deals for a wide range of clients, including plcs, corporates and private equity firms and has sourced funds from both mainstream and challenger banks and also from credit funds. Its recent activity has included a growth capital package for Sohonet, a global media connectivity provider, term debt to support Bestport’s MBO of Nu-Heat, an underfloor heating specialist in Exeter and a new larger and more flexible working capital facility for Porta Communications plc, an international communications and marketing organisation.
A positive feature of the past year has been the spread of lenders supporting HMT’s transactions including mainstream clearers HSBC and RBS along with challenger banks such as Clydesdale, Santander and OakNorth Bank and credit funds such as Beechbrook Capital. The latter two lender groups frequently display more appetite and pragmatism compared with their more traditional competitors.
Over the past year, HMT has increasingly seen incumbent lenders more actively manage credit risk, particularly in specific markets and sectors. Alongside a possible new wave of restructurings, HMT believes this could lead to a higher volume of refinancings in 2017 and 2018.
Challenges remain and raising debt continues to become even more stringent and complex than it was before. The processes frequently become elongated as business owners have to manage increasingly granular information and data requests from lenders.
Hiring the right debt adviser can help a borrower save money and time by in-sourcing debt and project management expertise to run a financing process efficiently and effectively.
HMT will continue to differentiate its debt advisory offering by focusing on SME and lower mid-market clients who appreciate its:
• market reputation combined with its established contact base that helps bring borrowers and lenders together efficiently
• unique experience and market position, which enables HMT to offer impartial advice and opinions to guide clients towards the best debt-funding solution
• commercial excellence that means HMT can source and negotiate the best deal for clients, delivering the optimum balance between pricing and commercial terms
• partner-based delivery and execution model.
