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LEASE CAPITAL RAISE PORTFOLIO MANAGEMENT
Client Situation:
A leading PE owned global broadcasting, production and technology support services company required Optimus to coordinate, secure, negotiate and manage a best-in-class $100M+ capital lease facility for projects in various stages of completion.
Engagement Objectives:
• Identify a pool of capable, competitive lease providers to finance ~$150 million ofassets for projects coming online over ~18 months.
• Determineoptimal lease structures, negotiate pricing and contract terms that mitigatedavoidable (punitive) fees and expense.
• Engagewith awarded lease provider(s) throughout the funding process to ensure termsheet compliance.
Challenges Faced:
• Multiple highly technical projects in various phases of completion required timely reimbursement for cash outlay.
• Inadequate ERP system output required immediate Optimus attention and reporting improvements.
• 15%of bulk equipment was without invoice or proof of payment, requiring tedious administrative oversight.
• Midstream financial downgrade of the customer “rocked the boat” and required Optimus ’experience and expert advisory.
Client Results
- Identified and secured lead base provider with highly competitive pricing (17% lower cost of capital than incumbents) even as company's credit was downgraded
- Negotiated all lease documentation favorable to the Client's current needs and future plans.
- Conserved countless Client hours and millions in fees and interest expense!