Investment instruments offered by Norsad shall be flexible and innovative and will be structured based on the financing needs and cash flow projections of the investee company. The repayment profile of the instruments can vary from fixed amortization to balloon or bullet repayment schedules.
Norsad investment size shall match the financing requirement of the investee company and/or expansion project. Norsad looks to invest between USD 2 million and USD 13 million in mid-market companies and can participate in co-investments or larger syndicated transactions.
Interest rate charged by Norsad shall typically be variable and risk-based. Generally, pricing and other terms of the instrument shall be market-based and reflective of the specific market conditions. In equity type investments, the expected total return (IRR) for Norsad shall take into account the related risks and ensure a sufficient return to Norsad as an external investor.
Norsad provides long-term financing and can also consider a grace period to match the cash flows of an investment. Norsad may consider medium term local currency financing if the return expectations cover the foreign exchange risks and/or local currency re-financing or where adequate foreign exchange hedging is available.
Norsad can structure the financing within the following instruments:
- Secured/Senior debt instrument
- Un-secured/sub-ordinated debt instrument
- Income participation loans
- Convertible loans
- Mezzanine and Equity Finance Structures