An international pay-TV operator was underfunded and its business model exposed it to foreign exchange risk.
The pay-TV operator had a complicated shareholding structure with fractious shareholders; further, its lenders did not have equal security for their respective facilities.
Mike arranged a refinancing of the funding structure to remove the liquidity constraint for the pay-TV operator, and to harmonise the security positions of the banks; this allowed them to increase their respective facilities. Mike first prepared a detailed financial model to design the appropriate funding structure. He then prepared a detailed and comprehensive Information Memorandum which supported the approval of the revised financing structure. Further, the revision of the security package allowed hedging banks to provide the necessary foreign exchange hedges to address the foreign exchange risks.
The funding proposal addressed the pay-TV operator’s liquidity constraint and its foreign exchange risks.
Case Study: Mike Fletcher (Click here to see Mike Profile)