Key Details
- Monaco Resident, National of a Nordic country
- Net worth: €600+ million
- Significant shareholding in a company that was undergoing a deSPAC
- Financing requirements: €10 million
- Terms offered: 12-month term at 1.75% per month
In this case, we assisted an ultra-high-net-worth individual from a Nordic country to raise capital of €10 million through what was effectively a pre-IPO loan.
The client was a Monaco resident and had a very considerable net worth, amounting to several hundred million euros. Most of this was tied up in shares in a company that was undergoing a deSPAC transaction. This meant that the individual was the UBO of a privately held holding company and was effectively going to list through a strategic merger with a SPAC (which was already listed).
The client wanted to use their shares as collateral for a loan to allow them to access liquidity before the completion of the deSPAC transaction. While they had a very significant net worth, most of this was linked to the individual’s shareholding rather than liquid and a loan was going to provide a short-term capital injection until the deSPAC was finalised.
Pre-IPO loans need to be arranged on a case-by-case basis, particularly because there can be more restrictive covenants than with other types of shareholding, and they can be riskier for a lender to use as collateral for several reasons (post-listing valuation, when the company will be listed, and longer-term considerations, including how the company will be managed after it’s listed, future acquisitions and so on).
The case was complex as the transaction involved a deSPAC, which made arranging this deal different than a more ‘vanilla’ pre-IPO loan as certain regulatory restrictions come into play just before a deSPAC process completes. However, we were able to secure a competitive, 12-month term at 1.75% per month.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
