Leveraged finance is a financing arrangement that focuses on the value and future cash flows of an asset. Our leveraged finance team comprises experienced, multinational professionals located in Tokyo, New York, London, Hong Kong and Sydney. Our expertise in providing alternative solutions and navigating complex legal issues helps deliver the best possible outcomes for our clients.
LBO allows financial sponsors to take advantage of the global debt markets to raise funds to purchase a target company or part of its business with limited capital. The future cash flow of the acquired assets can be used to secure the debt. It may use a mixture of multiple ranked debt including senior debt, mezzanine debt and junior debt.
LBO can be applied to other types of financing such as a management buy–out (MBO) and can occur in growth situations, restructuring situations and insolvencies. We lead this market in terms of transaction volume.
MBO allows the management team of a company to acquire all or part of the shares in the company through a new company established for that purpose.
Structure of a Typical MBO
Mizuho Bank’s Activities
Proposing ways to optimize the business portfolio
- Proposing solutions such as business transfers, taking companies private and “spin–outs.”
Assisting with financing during the LBO/MBO process
- Introducing potential investors and making proposals regarding the structuring of deals and the various procedures to use when executing the transaction.
Offering support for business restructuring and revitalization
- Providing sophisticated financing solutions, including total debt restructuring, borrowing–base financing, and debtor–in–possession (DIP) financing.
- The use of the above products or services is contingent upon the credit assessment in accordance with Mizuho Bank’s prescribed procedures. As part of this assessment, you may be required to submit certain documents.
- Fees may be charged for using these products or services. The amount and type differ depending on the details of individual transactions.
- Please consult an attorney, accountant, or tax accountant regarding any legal matters, accounting issues, or taxation concerns.