Finance Activities
Dover was formed to service small and medium-sized entities in the data management, radio, television, tower, internet media, and publishing sectors. The lack of viable financial resources for companies needing $1 to $10 million loans in the media sector has long been a problem for new operators, single-market owners, niche publishers, and other entities that lack the size and scale that traditional banks and finance companies require.
Dover offers companies seeking senior debt financing on a small scale to (a) complete an acquisition transaction, (b) refinance an existing loan or seller note, or (c) recapitalize a company. Dover also offers debtor in possession financing.
Major terms typically found in a Dover term sheet are:
- Size: $1 million - $10 million
- Security: 1st lien
- Term: 24 - 48 months
- Interest Rate: LIBOR plus 10 -15% depending on size, credit quality, and other underwriting criteria (will consider PIK interest)
- Fees: Typically 2 - 3%
- Covenants: Customary for transactions of this nature
- Warrants: Yes
- Amortization: Will work with borrower to structure a deal that makes sense for the situation (possible interest-only for a period of time)
- Timing: When necessary, we can perform due diligence and document a deal on an accelerated time basis.
|
|