Financing Solutions

Special Situations Financing

Special Situations Financing

Typically, Special Situations solutions are event-driven: recapitalizations, growth financings, acquisitions, and management buy-outs. As with all Crown Capital products, we structure to limit ownership dilution, allowing you to maintain independence and focus on growth.

Senior and subordinated debentures, with terms from six months to five years, are secured by your business and its assets (subject to prior interests of any existing senior lenders, in the case of subordinated debentures).

Some Special Situations solutions include bonus features for Crown:

  • Special warrants
  • Payment in kind (PIK)
  • Phantom equity or gifted shares

These features provide for solutions with minimal to no dilution that allow us to participate in business upside, in addition to income from interest payments.

Investment Structure and Terms:

Investment vehicle Senior or subordinated debentures
Overall cost of capital 12% – 17%
Bonus feature Warrants, gifted shares, phantom equity, PIK
Target loan size $5 million to $50 million
Duration 6 months to 5 years
Amortization Flexible
Prepayment cost Low
Company ownership Public & private

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Find out about our Long Term Financing Solutions