The number of institutions that are issuing bonds has increased significantly the last years. The market is broadly divided into Investment Grade (≥ BBB-rated) and High Yield (< BBB-rated). Bonds are promissory notes that can be structured both as subordinated instruments (contractually or structurally) or pari-passu with bank debt. As opposed to bank debt, bonds are public instruments that are freely transferable. In addition, bonds are usually non-amortising and generally have a less extensive covenant package. The tenor of a corporate bond is usually 3 to 5 years, but both shorter and longer tenors occur.
How we can add value
Carlsquare´ offering includes, among other things, in-depth analysis, production of a professional presentation material, identification of potential distributors, evaluation of financing proposals as well as coordination and support in negotiations and the closing of the transaction. Carlsquare assist the client in the establishment of a mandate letter with a bond distributor which covers the most important aspects of the financing and on a detailed level guide the project. The bond distributor normally test the project to a group of investors which provides a basis for a sharp indication, thereafter the mandate letter is signed. Carlsquare act as a fully independent advisor and support the client throughout the entire project – from start to closing. A project normally lasts approx. 6 weeks after signing of a mandate letter until closing of the transaction.