NAV loans: In high demand, but tricky to execute

NAV-based lenders' phones are ringing off the hook as sponsors explore their liquidity options. Borrowers will require patience.

At this point in time, financial sponsors are exploring every avenue of credit; they want cash for both offense and defense in this time of dislocation. Increasingly, they are knocking on the door of concentrated NAV lenders. Graham Bippart has explored this previously uncharted corner of capital markets (details here); subscribers can expect more insight in the June edition of the magazine.

Those looking to implement NAV loans will need to patient, though, as Connor Hussey reports today. “Even in the best of times, NAV facilities take more than a couple of months to put in place, but there’s a lot of conversations for the lenders to understand the nature of the assets and how to value them and what the exit strategy is,” said Ramya Tiller, partner at law firm Debevoise & Plimpton. Full story here.

Email prepared by Toby Mitchenall.