Acquisition Finance includes the activities related to the structuring/arranging, underwriting and syndication of debt financing for the acquisition of mid and large sized companies. The Bank has been a market leader in Portugal with dedicated product teams in Portugal, Spain, Poland and Brazil.
The acquisition debt, which can take the form of a package comprising several tranches with different terms, is structured according to the cash-flow generation profile of the target company. In other situations, especially when the transaction is led by a corporate, the debt package will also take into account the cash flow profile of the buyer with the intention to enhance the financing structure.
The most common type of debt used is senior debt (i.e., which takes priority over subordinated creditors and shareholders). The subordinated debt (mezzanine or high yield bonds) is also present in some transactions.
The Bank's team has built a wide experience and know-how through the execution of this type of transactions, having introduced Leveraged Buyouts (LBO) and Management Buyouts (MBO) to the Portuguese market.
Besides Acquisition Finance, the Other Loans business designs structured solutions for corporate Clients for large or relatively complex investments/refinancings, and also provides advisory support to its Clients. Through the Bank's Warsaw branch, we are also supporting Clients in the development of their activities in Eastern Europe, mostly through assisting them with the provision of bank guarantees/stand-by letters of credit.