How FinnestPro works
FinnestPro is a fully automated corporate finance platform where successful medium sized companies and larger corporations find professional investors to diversify their financing mix. Typically, deal volumes range from EUR 2.5 to 25 mln. On FinnestPro, the issuer (the company) sets the deal terms; financings are always long-term and mostly unsecured.
Fully digitalized, FinnestPro completes the entire transaction, from document creation to closing, fast and at low cost. FinnestPro operates in a high security environment and conducts debt capital transactions in Austria, Germany, Switzerland and Slovakia, with new markets to follow. Depending on the individual needs, financial tools like promissionary notes (Schuldscheindarlehen), syndicated loans and other debt capital instruments are used.
Issuer / Company
- In order to get financed, issuers must be legally incorporated in Austria, Germany, Switzerland or Slovakia and they must have completed their registration on FinnestPro as well as agreed to the Terms & Conditions (”T&C”).
- FinnestPro is ideal for companies and corporations with a successful track record of at least 10 years, minimum annual revenues of EUR 10 mln. and (very) solid financial covenants.
Lender / Investor
- In order to become an investor, lenders must be legally incorporated in Austria, Germany, Switzerland or Slovakia and must have completed their registration on FinnestPro as well as agreed to the T&C.
- Investors on FinnestPro include insurance companies, pension funds, banks, AIFM's / family offices, trusts and other financial institutions, who can provide loans without a banking license.
Lead arrangers / banks
- Lead arrangers on FinnestPro are licensed banks planning to syndicate a loan and who want to outsource part of the required services.
- Lead arrangers are typically banks, who are not supporting their own syndication infrastructure or who deem an involvement of the syndication desk too costly for a specific transaction.
2. The new way of corporate finance
Fully digitalized, FinnestPro automatically sets up your financing and processes it. Each investor individually evaluates the presented opportunities in their own rights – Finnest neither offers nor invests in transactions nor do we provide investment recommendations.
Opening the ORDER BOOK
In one of our customized, high-security data rooms you will present information such as contract terms, the information memorandum, KYC documents, annual reports as well as any other documentation required for a fast-track due diligence. Upon request, you can make use of proven template structures. All data rooms are equipped with special access controls, e.g. to grant access only to a selected group of investors (private placements).
You set the margin range and define minimum and maximum ticket sizes per investor. During your ORDER BOOK PERIOD (the duration is defined by you), selected investors are automatically invited to pitch their best offers to you. This order book period usually consists of an INDICATION PHASE (during which potential investors indicate non-binding indications) followed by the COMMITTMENT PHASE (investors present their binding commitments).
Selecting your investors
Based on the parameters set by you, investors provide offers, typically consisting of a reference interest rate plus a margin and the maximum financing amount. By default, each individual financing must surpass EUR 0.5 mln. Total transaction amounts vary between EUR 2.5 and 25 mln., depending on the company's financing needs. You are free to decline investment offers, regardless of whether they comply with your set parameters or not.
At the end of the COMMITTMENT PHASE you select one single margin attributable to all commitments. Investors who offered a lower margin are automatically attributed the higher margin selected by you. In those cases where the cumulated transaction amount surpasses the companies financing needs, you are free to accept an oversubscription of up to 20 %. Commitments which surpass the 20 % oversubscription are automatically cut applying a simple pro-rata rule: the investor(s) requesting the highest margin are cut (pro-rata) first.
Finnest informs each investor whether their commitment has been accepted (notice of acceptance) or not. Automatically, the financing documentation is automatically completed (investors' & company data, investment amounts etc.) and electronically provided to law firm Herbst Kinsky for closing.
Investors do not pay any fees. An upfront fee of max. 1.95 % on the final accumulated financing amount, including all services rendered by FinnestPro, is payable by the company. Apayment of EUR 9,500 will be charged to the company before opening the order book. This payment will be deducted from the final upfront fee and applies regardless of closing the transaction.
4. Outsourcing of credit syndication infrastructure
Banks planning to syndicate a loan or Schuldscheindarlehen are invited to use FinnestPro’s leading-edge technology: Whether you do not support your own syndication infrastructure or you deem an involvement of the syndication desk too costly for a specific transaction, simply use the infrastructure of FinnestPro!
On FinnestPro, you can syndicate loans and Schuldscheindarlehen fast and in a high-security environment. You simply rent one of our high-security data rooms and upload all documents for your transaction. You define the access rules, the timing and the terms of the syndication. With the flexible and scaleable FinnestPro technology you select potential investors, manage invitations and sales activities and complete the loan process tailored to your needs. FinnestPro provides all pricing, allocation, communication and agency tools to manage the deal successfully. And Finnest experts are there 24/7 to support you as part of our V.I.P. services.