Equity and Debt Financing

When a client’s business needs additional working capital, and management is weighing the relative merits of equity and debt financing, we help evaluate the benefits and risks of those very different methods of raising funds. Once the decision is made, we guide the client through the obstacles that inevitably arise before actual funding occurs.

Each type of financing has its own complexities and difficulties. During an equity financing transaction, our attorneys work with the client to coordinate the business and legal aspects of capitalization tables, dilution, term sheets, bridge financing, venture capital requirements, due diligence, preferred stock terms, warrant coverage, staged closings, milestones triggering additional funding tranches, post-closing covenants, and employee equity pools. If debt financing is the appropriate choice, the same coordination must take place as to commitment letters, origination and other loan fees, convertible debt instruments, loan agreements and debt covenants, senior blanket liens and other security interest grants, subordination agreements, inter-creditor agreements, personal and corporate guarantees, warrants, credit facilities, letters of credit, account receivable and other asset-based lending, and equipment lease financing.

Whether the client has chosen to pursue equity or debt financing, our attorneys possess the necessary skills and judgment to organize, analyze and simplify the information and decisions that affect the success of the transaction.