Lenox professionals have significant experience in raising and structuring private capital and have deep, long-standing relationships with institutional providers of debt and equity. Lenox has successfully raised senior debt, mezzanine (subordinated) debt and institutional equity on a majority or minority basis. Lenox will work with clients prior to going to market to understand fully the capital need and the strategic vision of the shareholders. Lenox will outline the company’s options regarding the form of capital (debt or equity) and the benefits and challenges of each type of capital as well as the best terms that can be achieved in the market.

Debt Advisory

Companies have engaged Lenox to raise debt capital for a variety of reasons including shareholder liquidity, refinancing of existing debt, capital expansion supporting organic growth and acquisition financing. While each situation is different, the commonality for clients generally has been the need for additional capital to grow. While senior debt capital offers the least expensive alternative, senior debt can also limit the flexibility of the borrower through restrictive covenants and personal guarantees. Mezzanine debt is a more expensive security but it is generally structured with a five-year term, interest-only (no principal amortization) and carries fewer covenants.

Equity Advisory

Lenox has also advised companies in raising institutional equity both for growth as well as shareholder liquidity goals. Many of the shareholder liquidity transactions have centered around generational change issues. In these instances, Lenox has executed recapitalizations whereby shareholders get partial liquidity but continue to operate the business going forward with a financial partner.

Lenox clients benefit from the cumulative experience, expertise and relationships of the firm’s senior partners, who lead each transaction process. Over the years, we have continually counseled our clients that all the institutions have money but there must be a cultural fit between the provider and the shareholders and a shared vision for the company. Our long-standing relationships and prior experience with middle-market capital providers uniquely positions Lenox to assist our clients in differentiating between providers and achieving the best results.