Debt Capital Markets – Gambit Review Summer 2024

Cost of capital has trended downwards over the last 18 months, with inflation falling from a peak of 11.1% in October 2022 to the target level of 2% in May 2024.

The Bank of England has held the base rate at 5.25% since August 2023 and Capital Economics forecasts that rate cuts are anticipated in the second half of 2024, with rates further softening to 3% in 2025.

Nevertheless, financial institutions continue to have significant influence over terms, scrutinising covenant headroom, rigorously testing sensitivity scenarios and concentrating on EBITDA ‘add-backs’.

In this current climate as the debt markets continue to re-open for borrowers, it is essential to leverage the expertise of experienced corporate finance advisors to be well-prepared for discussions with financial institutions.

To read full article, click here.

 

Share on:

Subscribe to receive our latest sector bulletins, thought leadership articles, deal completion reports and newsletters.

Read another insight

/ News
Gambit Corporate Finance acted as lead advisor to the shareholders of MWC Partners on its sale to Vesta Software Group....
The award-winning advisory firm has expanded its leadership team with the appointment of Rob Wallace as Partner. Gambit Corporate Finance...
Gambit Corporate Finance has acted as lead financial advisor to The London Mint Office Limited, in securing a new customer...

Search Gambit Corporate Finance