Areas of expertise

What we do

AlphaDebt helps organisations define and execute their debt and capital management strategies in an efficient and effective way.

As AlphaDebt is singularly focused on one service offering, the provision of debt and capital management advice, we are free from any potential conflicts of interests.

Debt Raising

01

  • Raising of debt through event-driven activities

  • Finance of organic or inorganic growth

  • Raising of debt to support organisational changes – such as demergers and IPOs

Debt Refinancing

02

  • Existing debt limits or increasing facility limits

  • Improving terms and conditions

  • Diversification of funding sources

  • Expanding banking group

  • Introducing non-bank lenders (for diversification, higher risk appetite, longer-term debt)

Debt Restructuring

03

  • Covenant waivers and amendments

  • Bank negotiations

  • Assistance with the preparation of internal Management / Board papers

Capital Structuring /
Capital Management

04

  • Review of existing debt arrangements, and the capital structure of your company, to identify any improvements that would better reflect the company’s corporate strategy

  • Review or establishment of a Financing Roadmap and / or a Capital Management Plan, to ensure the financing plan aligns with and supports the company’s long-term strategic objectives

  • Determining optimal debt sizing parameters and target gearing levels

  • Conducting sensitivity analysis under various growth scenarios

  • Identifying alternative financing sources that align with the company’s business strategy

  • Preparation for a credit rating process

Transactional Banking

05

  • Review of transactional banking arrangements

  • Assistance to help manage a transactional banking tender process

Why we exist

Over the last 15 years, the banking market in Australia has grown, evolved and expanded rapidly - well beyond the market created by the “big 4 Australian banks” (CBA, ANZ, WBC and NAB).

In addition to the “big 4 banks”, the financing market available to corporate Australia has evolved to include a large collection of banks and financiers including:

  • The entrance of foreign banks with operations in Australia, servicing Australian corporates directly

  • The expansion of the domestic regional banks

  • The burgeoning “private debt sector” comprising the largest industry superannuation funds, niche credit funds in both the property and non-property sectors, together with a strong appetite by US Private Placement debt investors    

The challenge and complexity for Australian corporates looking to fund their business is that there is now no “one solution” to the provision of debt in the market, with:

  • A rapidly evolving and changing banking market;

  • The fragility of “long-term relationship banking”, that supports clients through all economic cycles

  • The decline of expertise, experience and longevity of employees in the banking sector with a more transitory workforce

  • Variable and challenging economic conditions; and

  • Heightened competition in the sector

Each bank and financial institution has a specific and particular debt appetite that varies through market conditions and cycles.

For corporates, attempting to navigate through these challenges is difficult, given the “market knowledge asymmetry” that exists between financiers and companies.

How we assist

  • AlphaDebt assists clients by reducing this “market knowledge asymmetry”, to ensure that clients are provided with the best outcome in the market.

  • Utilising our unparalleled banking and debt advisory experience in the Australian market, AlphaDebt provides the “bridge” between those clients seeking assistance with debt facilities and financing markets.

  • AlphaDebt improves the “market knowledge asymmetry” through our experience, expertise, insights and contacts.

  • AlphaDebt manages our clients through the right channels in the debt markets. The AlphaDebt process ensures the financiers receive:

    • The “right” information (i.e. reflecting the company in the best light from a competitive, industry and financial perspective);

    • The “right” format (i.e. Information Memorandum, Term Sheet and Financial Model);

    • All information is provided in a timely manner, that “speaks the language” of the banks (i.e. presenting the risk and mitigants of the financing proposal which is structured in the correct manner) to ensure the best chance of success. 

When we can help

Potential triggers that may indicate your company’s requirement for our services include:

  • Existing debt facilities are approaching maturity (i.e. are due to expire within the next 12 months)

  • Your company is experiencing growth activity that needs additional funding for capex or working capital

  • Potential event-driven (i.e. acquisition or demerger/sale) activity

  • A change (i.e. improvement or deterioration) in your company’s credit condition, including seeking amendments or waivers to potential financial covenant breaches

  • A change (i.e. improvement or deterioration) in general debt market conditions

  • The appointment of a new Chief Executive Officer, Chief Financial Officer or key non-executive director (e.g. Chair of Audit and Risk Committee)

  • Critically assessing event-driven activity by a competitor / peer companies

  • Diminishing bargaining power with existing financiers due to too much concentration / reliance on one or a small number of banks

  • Reducing the risks posed by impending or a relatively short debt maturity profile

  • Messaging received from existing banks or financiers indicating their desire to reduce or exit exposure or a lack of willingness by the bank to support growth initiatives

How we work

At AlphaDebt, we take a “hands-on” and personalised approach to each client to work towards achieving the optimal financing solution.

Each client is managed directly and specifically by a senior team member who has decades of banking and / or debt advisory experience. We look to:

  • Think strategically and act tactically

  • Act ethically and confidentially

  • Provide regular and transparent communication