Ziff Capital (ZiffCap) specializes in purchasing non-performing C&I credits from banks, in addition to providing debt and equity investments for middle market manufacturers and transportation companies in special situations
ZiffCap makes principal investments in non-bankable middle market industrial companies. Investment scenarios include: ABC Sales, 363 sales, start-ups, restructurings, note purchases, and recapitalization in or out of the context of bankruptcy. Typical investment sizes range from $500K-$10MM.
C&I Note purchases
ZiffCap can move quickly to acquire troubled C&I credits from banks. Note acquisitions are not only an efficient way for managed assets and workout bankers to get non-performing credits off their books, but it saves additional professional fees and time associated with obtaining judgements, engaging receivers, or conducting Article 9 sales. We always try to purchase debt at or close to par, but when a discount is achieved, we often offer to share in that discount with the debtor; sometimes re-writing the paper to the debtor’s advantage in exchange for an equity position in the go-forward business.
Refinancing
Whether covenants have been tripped, a loan is in default, or the credit has been downgraded, ZiffCap can provide manufacturers and transportation companies more flexibility and availability than traditional banks and lenders. ZiffCap understands how to customize a refinance structure that unlocks maximum equity in their assets without letting credit history become an issue. As a private lender, we can get creative on refi loan structures, and provide a greater advance on machinery and equipment, accounts receivable, inventory, and real estate. In addition, we can help banks reduce their exposure by refinancing them out of their term loans while they may wish to stay in the working capital line.
Acquisition financing: term loans, bridge loans, and sale-leasebacks
ZiffCap provides acquisition financing to start-ups with no history of cash flow via term loans, bridge loans, and sale-leasebacks. We understand the need for flexibility when starting a new business, and so we structure customized, creative payment plans that may involve periods of interest only, or even periods of no payments, in order to provide our clients with the runway they need to successfully take off. ZiffCap also provides acquisition financing to independent sponsors and strategics looking to leverage an acquisition of an industrial company out of a non-bankable scenario, such as a 363 sale or an article 9 sale.
Bankruptcy Scenarios
ZiffCap provides DIP (debtor-in-possession) financing to industrial companies in order to facilitate and fund the bankruptcy process. We also provide exit financing in certain circumstances to facilitate the emergence from a Chapter 11 bankruptcy. In addition, we acquire industrial companies out of 363 sales as a principal, providing debt alongside equity capital in order to complete the acquisition and provide working capital.