Project Finance is an instrument to finance large investments, based on the project’s own capacity to generate cash flows that cover, in the first place, the service of the debt, and adequately compensate the shareholders

Haya Capital advises private companies and public bodies in the study and financial modeling of the projects to be financed

To develop the financial model, Haya Capital develops the following activities:

• Sector analysis
• Analysis of the applicable legislation, especially in sectors subject to subsidies and regulated tariffs
• Calculation of the optimal financing structure
• Elaboration of the mathematical model fed by the defined working hypotheses

Finally, Haya Capital advises its clients in negotiations with financial entities

The debt restructuring includes the tasks associated with the search and renegotiation of financing sources, with the aim of modifying the capital structure of the company, thereby improving its ability to pay.

The financial restructuring must be accompanied by an operational and strategic restructuring, so that both projects must be developed in parallel and in a consistent manner, ensuring the viability of the company

Haya Capital applies its experience in the elaboration of business and viability plans for the development of this type of projects. Normally, the hiring of these services involves the following activities:

• Analysis of the current situation of the company and its sector, understanding the causes of the need to refinance
• Preparation of a feasibility plan that allows the company to mark and meet the established objectives. The feasibility plan is prepared in a consensual manner with the company’s management and includes the following content:
  
  • Description of the business model
  • Analysis of the current macroeconomic environment, situation of the sector and of the main competitors
  • Analysis of the company’s financial situation
  • Analysis of the productive processes and associated costs, by business unit
  • Preparation of a financial model to estimate the cash flows of the company for each business scenario, as well as the company’s repayment capacity under different hypothesess
• Development of the financing proposal that includes the following chapters:
  
  • Analysis and recommendation of funding options, depending on the structure of indebtedness of the company and the feasibility plan
  • General structure of the transaction including refinancing and new funding
  • Detailed structure: financial methods and specific requirements (syndication, policies, mortgaging)
  • Conditions: time and cost (reference rate differentials, hedging)
  • Transaction guarantees (mortgages, guarantees, liens, pledges)
  • Distribution of funds between lenders
  • Schedule of disbursements and repayments (in contract, accelerated depreciation, or cash-sweep)
  • Margining ratios and covenants (ratio of debt service coverage, equity, dividend restrictions, restrictions on new investments)
• Advice on negotiation with financial institutions:
  • Presentation and argument of the Feasibility Plan to entities
  • Resolution on the proposed debt refinancing
  • Feasibility Plan adjustment to potential changes in the refinancing proposal
  • Coordination with legal counsel to the closing and for the potential Due Diligence

Haya Capital advises companies in the search for bank and non-bank financing, looking for tools to optimize their financial structure:

• Financing mezzanine
• Participative loans
• PIK loans
• Preferred shares

Haya Capital advises companies who seek to improve their funding sources and to optimize their capital structure

Haya Capital advises its clients in the definition of their optimal financing structure in the short, medium and long term depending on different scenarios. For this, the following activities are carried out:

• Calculation of cash generation capacity
• Determination of actual financing needs
• Design of the optimal ratio of financial debt and equity
• Selection of the most appropriate financing instruments
• Negotiation and raising of new financial resources with fund providers: financial entities and private investors