Stonebridge delivers comprehensive advisory and capital raising services for seniors housing. We focus on the sponsors.
Our structures are designed to not only meet your capital needs but also to ensure that you retain more control of the deal.
Financial Services uniquely suited to raise capital for any situation, we offer the following capabilities: debt place, equity capital, and capital in-between.
Our approach to debt placement involves ensuring the debt meets Sponsor’s objectives and aligns to the business plan. The conversation usually revolves around pricing, but the magic is in the confluence of how terms help the debt fit the plan without imposing burdensome exit fees. Moreover, we expertly project manage the debt process. Our approach to debt placement involves ensuring the debt meets Sponsor’s objectives and aligns to the business plan. The conversation usually revolves around pricing, but the magic is in the confluence of how terms help the debt fit the plan without imposing burdensome exit fees. Moreover, we expertly project manage the debt process in the following manner:
- Seek to understand the plan and objectives; then, validate
- Develop a decision support framework to help sponsors bring all material factors to light and normalize quantities for an apples-to-apples comparison
- Project manage the execution, including status reporting
- Attend to the closing period, which usually involves a fighting a number of fires, each small but many consequential to timely closing and meeting expectations
The private capital market remains – in a word – inefficient. Despite crowdsourcing, Regulation A, Regulation 506(c), and other changes in the legal minefield of the private capital market, the cost and terms of capital range significantly across this spectrum. It is precisely this inefficiency that enables Stonebridge Securities to bring value.
Capital In-Between Senior Debt and Common Equity
Optimizing the capital stack is achieved by addressing the gap between traditional senior debt and common equity. Bringing in too much mezzanine capital will cause the senior lender to tighten the credit box and decrease the advance rate, while often maintaining a recourse structure. The net result? A higher cost of capital with more overall exposure.
That being one example, there are countless other scenarios. Leveraging our process approach to seniors housing finance by employing our Decision Support System (DSS), helps to find that optimum balance in the capital stack and drive the project to success, meeting the project timeline.