Boustead Securities specializes in raising debt and equity capital for both privately-held and publicly-held companies in the lower middle market. Services include:
Initial Public Offerings (IPOs)
Senior Revolvers and Term Debt
Registered Equity or Private Placement (PIPE) Equity Offerings
Shareholder Liquidity Situations
Initial Public Offerings - Whether conducting a NASDAQ IPO or public offering on a junior exchange, Boustead Securities can serve as lead underwriter on a firm commitment or best efforts basis. The Boustead Securities corporate finance team can guide an issuer through the IPO process including engagement, due diligence, marketing, regulatory filings, structuring, selling group, and closing.
Senior Revolvers and Term Debt – The lending environment for small cap companies was changed fundamentally after the ’08-’09 “Great Recession”. Large, well-known money center banks withdrew from the sector leaving a gap now filled by many, smaller specialty lenders which are active but unknown by most companies. In order for small cap companies to find these niche lenders, many companies now rely on advisers such as Boustead Securities who know the market well and can efficiently access this capital. Cost of capital in this sector is likely in single digits so this capital is worth considering.
Mezzanine Debt – Among the niche small cap lenders are mezzanine lenders, which have a risk appetite that is between classic “hard asset” lenders and equity investors, as the name implies, a “mezzanine” risk level. Within this category are “venture lenders” with a high risk tolerance and “cash flow lenders” with a lower risk tolerance. Cost of capital in this sector may be in the teens, with a combination of a cash interest rate around 10% and the balance provided by an “equity kicker” such warrants. While more expensive than senior debt, it is less expensive and more attainable than equity so well worth considering. For more on venture loans (click here).
Registered Equity or Private Placement (PIPE) Equity Offerings – Small cap companies have a wide range of mechanisms available for raising equity. It’s important for companies to understand the alternative options in order to make good choices among them. Boustead Securities can explain the alternatives and their pro’s and con’s plus guide your company to raise capital in the best manner available. For a description of alternatives for raising equity (click here).
Project Financing – Often an overlooked option, project financing may enable a company to raise capital without diluting its own equity or taking on company-level debt. Project financing may be feasible when companies have business operations which are sufficiently large and generate identified, medium-term revenue streams. Boustead Securities is assisting several greentech companies in pursuing project financing for medium to large scale projects.
Shareholder Liquidity Situations – Shareholders considering selling or buying large blocks of a company’s stock, especially a small cap company’s stock must be careful to avoid unfavorably moving the stock price. Boustead Securities trading desk is adept at moving blocks of stock in less liquid companies because it has the “hands on” involvement of seasoned traders, not machines. Whether you are quietly accumulating a position or dribbling one out into the market, Boustead Securities can help. For information about getting private placement shares into a brokerage account, click on this link
Valuations – Companies may need valuations for many reasons including estate or tax planning, buy/sell agreements or preparation for a divestiture. Boustead Securities professionals have many years of experience in all types of valuations and can assist your company to consider and execute the valuation right for your situation.