Corporate securitisation - EY ?· EY ssurance Tax Transactions dvisory About EY EY is a global leader…

Download Corporate securitisation - EY ?· EY ssurance Tax Transactions dvisory About EY EY is a global leader…

Post on 21-Jul-2018

214 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

<ul><li><p>Corporate securitisation</p></li><li><p>3 Document title Additional text</p><p>What are the benefits of securitisation?</p><p>Acceleration of cash flow/working </p><p>capital boost</p><p>Lower cost of debt</p><p>Higher leverageFunding </p><p>diversity/access to capital distinct </p><p>from corporate lending/bond </p><p>market</p><p>Potential to move funding </p><p>off-balance sheet</p><p>1</p><p>2</p><p>34</p><p>5</p><p>What is corporate securitisation?A secured financing whereby investors lend directly against a pool of financial assets, such as receivables, sold by you to an orphan special purpose vehicle, with no recourse to yourself as the originator/seller.</p><p>Senior lenders are protected by a credit buffer (overcollateralisation) funded by you and, if desired, junior investors.</p></li><li><p>Do you need support?Securitisations are particularly complex transactions.</p><p>Compared to other financings, it is more difficult for companies to understand where value is shifting to lenders throughout term sheet negotiation and transaction execution.</p><p>The total funding package matters much more than just a proposed credit spread and initial estimate of the advance rate. There are dozens of decisions that will be made along the route to financial close, on asset eligibility requirements, concentration limits, trigger events, data requirements, cash management requirements, reporting requirements, hedging proposals, performance guarantees, funding calculations and a host of other issues.</p><p> How you resolve these issues will have a material impact on your business and on the funding outcome, including net costs and net leverage.</p><p>Is securitisation right for you?Before deciding to launch a transaction, you may have important questions that need answering:</p><p>What are the true costs of securitisation?</p><p>What are the risks?</p><p>How can I get the best value from potential lenders?</p><p>How does it compare to your other funding options?</p><p>How would the securitisation work?</p><p>How long would it take?</p><p>What are the data and operational requirements?</p><p>How would it impact my business?</p><p>Am I ready to securitise now or should I wait?</p><p>How we can helpAcross structured finance markets EY offers the full range of financial advisory and support services through the transaction life cycle.</p><p>We act as an independent debt advisor to sponsors from the initial assessment phase of a securitisation right through to financial close.</p><p>We help clients put in place or refinance structured funding that balances competing objectives of leverage, pricing and flexibility.</p><p>Director Capital and Debt Advisory+ 44 20 7951 6395 akrawchenko@uk.ey.com</p><p>Contact:Anton Krawchenko</p><p>You can also find out more at ey.com/uk/cda</p></li><li><p>EY | Assurance | Tax | Transactions | Advisory</p><p>About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.</p><p>EY refers to the global organization, and may refer to one or more, of the member firms of Ernst &amp; Young Global Limited, each of which is a separate legal entity. Ernst &amp; Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. </p><p>Ernst &amp; Young LLPThe UK firm Ernst &amp; Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst &amp; Young Global Limited.</p><p>Ernst &amp; Young LLP, 1 More London Place, London, SE1 2AF.</p><p> 2017 Ernst &amp; Young LLP. Published in the UK. All Rights Reserved.</p><p>ED None</p><p>EY-000042118.indd (UK) 09/17. Artwork by Creative Services Group London.</p><p>In line with EYs commitment to minimise its impact on the environment, this document has been printed on paper with a high recycled content.</p><p>Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst &amp; Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.</p><p>ey.com/uk</p></li></ul>

Recommended

View more >