Debts/Bond/Commercial Paper Advisory
Arka Projects is targeting unlisted, un-rated middle market companies in China and Indonesia. This market is deterred by the large upfront expenses incurred for exploratory capital markets advisory work.
Tough macro-economic conditions combined with the middle market companiesí inability to access the high yield market due to high minimum size requirements, has created the need for flexible, private mezzanine capital market transactions for commercial paper in the $20 million to $100 million range.
Appropriate high quality advice is often the most critical factor in maximizing client value for a bonds/commercial paper offering by an unlisted, un-rated company.
A bonds offering by a listed and known entity is normally comprised of notes that range from AAA/Aaa to BB/Ba2. Common equity of a listed and known entity can be used in private placements for the firmís corporate finance requirements.
Securities that fill the financing gap between senior bank debt and common equity are mezzanine investments. Mezzanine investments are generally structured as subordinated debt or preferred stock with a current cash coupon and an equity participation feature, usually in the form of warrants or a clause for equity participation at some point in the future. Our partnership with an international broker offers one such alternative.Our Target Market
Our bonds/ commercial paper capability for clients is through a distribution tie-up with an international broker. The bonds/ commercial paper offering by an unlisted, un-rated company typically consists of senior secured loans with a mezzanine element to non-investment grade borrowers.
Arka Projects is targeting middle market companies in China and Indonesia. This market is deterred by the large upfront expenses incurred for exploratory capital markets advisory work.
Tough macro-economic conditions combined with the middle market companiesí inability to access the high yield market due to high minimum size requirements, has created the need for flexible, private mezzanine capital in the US$10 million to US$100 million range. The shortage of supply of private mezzanine capital, has created attractive potential for the timely issue of un-rated bonds/ commercial paper by fundamentally sound listed/ unlisted business enterprises.
Target transaction size for bonds and commercial paper is between US $10 million and US $200 million; however, larger and smaller transactions are considered on an opportunistic basis. As a result of our internationalization efforts, we have access through international partners to deal flow, intellectual capital and local knowledge of key Asian markets in China and Indonesia.
In addition, the Arka Projects team has access to the mezzanine investment professionals within our bonds/ commercial paper distribution partnerís team as well as the expertise of advisory professionals of our professional service provision partnersí network in Singapore and the issuerís home country.