SalemBridge Advisors

P: 646-926-4391

F: 646-304-9221
info@salembridgecapital.comm

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SalemBridge Investments, LLC dba SalemBridge Advisors is not a licensed securities dealer, broker or US investment adviser, or certified public accountant. None of the information contained herein constitutes a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities and or properties. Any completed transaction is strictly one of private placement, and is in no way relying upon, or relating to the United States of America Securities act of 1933, as amended, or related regulations. Merely describing the details of an existing private placement program does not constitute an offer or solicitation of any kind and, if presented, is done so as a request for information.

 

SalemBridge Advisors is in the business of commercial business consulting. SalemBridge Advisors makes no warranties or representations whatsoever. All due diligence is the responsibility of the Borrower, the Correspondent and the Lender.

DIP FINANCING

DIP Financing

 

SalemBridge Advisors provides Debtor-in-Possession Financing (DIP Loans) to companies that are currently distressed and undergoing a Chapter 11 Bankruptcy for restructuring. This type of special financing is a post-petition arrangement that allows the company to retain its assets and maintain its operations, while giving the company a fresh new injection of working capital that is - senior or equal - to all other existing debt, unsecured debt, equity and other claims, depending on the court’s ruling.

 

If your company has decided that a Chapter 11 Bankruptcy is more suitable than an out-of-court restructuring, and have already filed for Chapter 11 protection, with a viable and succinct plan of reorganization in place, SalemBridge can provide New Money DIP Financing if additional capital has not yet been by provided by existing pre-petition creditors or others capital providers.

 

Although usually more convenient to have pre-petition lenders to assume the DIP Lender role to avoid inter-creditor or priming fights, many companies however find themselves needing third-party financing or perhaps even Junior DIP Financing to enable them to carry out their turnaround/restructuring objectives. This is where SalemBridge can help as we will work with your team, legal counsel and attorney on structuring a deal with our credit partners that are in line with local regulations and restrictions within your company’s jurisdiction in order to avoid wasting valuable amounts of time.



 

Transaction Size:  $100,000 to $100,000,000

Rates: LIBOR + 3-12%

Structure/Terms:

  • Line of Credit / Revolver / Term Loan

  • 1-2 year terms

  • Convertible / Non-Convertible options

  • DIP-to-Exit (rare)

Covenants: Milestone Achievements (Court approval of disclosure statement, confirmation hearing)

Fees: 1-4%

Criteria: Must be in Chapter 11 Bankruptcy or considering filing, used for working capital / liquidity or prepping for a sale of assets