BBG-SIMEX - BULGARIA carries out intermediation for financing of investment projects with approximate quantity of the financing in demand from minimum EUR 250,000 to maximum EUR 3,000,000 or the equal amount in BGN or USD.
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All current activities in relation to the conducting of the necessary studies, analyses, evaluations, grounds, and negotiations with potential financing institutions are done for FREE.
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The remuneration for the work done is formed as a success premium in amount of 1,5% of the secured financing which is due by the date of the signing of the contract with the financing institution.
Procedure
1.Presenting of investment intentions by an Application enclosed as a model.
2.Evaluation of the investment intentions by BBG SIMEX – BULGARIA, regarding the chances for realization of the requested financing.
3.Informing the Bearer of investment intentions (Notifier) about the result of the evaluation of item 2
4.Discussing the investment intentions between the notifier and BBG – SIMEX BULGARIA and taking a joint decision regarding continuation or termination of activities.
5.Conclusion of “Confidentiality Agreement” and “Investment Intermediation Contract” between the Notifier and BBG – SIMEX BULGARIA (in case of a positive decision in item 4)
Types of Financing
Investment Credits
Combining of new shareholders participation and credit lines
Investment Credits
General requirement
Candidate’s partnership for getting a credit of minimum - 20 % of the amount of the investment (depending on the guarantees).
Guarantees
All guarantees allowed by the Bulgarian legislation are accepted.
Purpose
For acquiring Long-term assets.
For buying up companies or their differentiated parts.
For buying a majority block of shares.
For working capital as part of the financing of the investment project.
Financial conditions
Paying off term – up to 84 months.
Interest levels depend on the evaluation of the credit deal risk.
Interest payments – monthly
Principal payments – by a contracted sinking plan, in accordance with the business specifics. An option for a 24-month free of charge period.
Combining of new shareholders participation and credit lines
The legal entity, bearer of the investment intentions, has to be a Joint Stock Company according to the Trade law.
Structure of the financing
The Financing Subject (usually a strategic investor or a mutual fund) secures the financing necessary for the realization of the investment intentions under the form of:
Shareholders participation
The Joint Stock Company – bearer of investment intentions increases its capital by issuing new shares, which are booked by the Financing subject. In this way he acquires from 20 to 49% from the capital of the trade company.
Usually, the Financing subject’s shareholder participation is with a pre-arranged term and ensures the larger part of the investment needed.
Long-term credit line
The remaining part of the financing needed, will be in the form of long term Credit line. When the finance objectives of the Business Plan for the development of the Joint Stock Company during the first full financial year are achieved the financing subject could reshape part of the Credit line into Shareholder participation without changing his common stock share.
Usage of the funds
All funds will be used according to the Business Plan and Budget approved by the Financing Subject and the other shareholders, as part of the investment contract.
Shareholder’s participation period
Usually the Financing subject is a shareholder in a trade company for a period of three to five years.
Minority rights
As long as the Financing Subject is a shareholder in the company he has a right of veto on all decisions essential to the functioning of the Joint Stock Company.
Frame conditions for “stepping out” of the investment
The shareholders in the trade company have the priority right (and sometimes obligation) to buy up the Financing subject’s shares according to a pre-arranged term and conditions or under the conditions according to which he could sell them to a third party in case there are no pre-arranged contract term and sale conditions.
In case no one of the other shareholders is able or wants to buy up the Financing subject’s shares, he has the right to sell them to a third party.
If there is a pre-arranged agreement between the shareholders for the price at which they are going to buy up the Financing subject’s shares and in case they do not fulfill this obligation, the Financing subject has the right to offer for sale to a third party both his and the other shareholder’s shares to the amount of the pre-contracted price.
The other shareholders will not have the right to grant, sell or pledge their shares without the written approval of the Financing Subject. In the event of such sale the Financing Subject will have the guaranteed right to buy the offered shares with priority under the offered conditions, and will also have the right to sell a proportional part of his shares to the same buyer under the same conditions.
Liquidation rights
In case of liquidation the Financing Subject will have the right to receive the amount of his investment share before any distributions are made in favor of the other shareholders.
Notes
The above-mentioned conditions are frame ones and are subject to negotiation in any single case.
The details of the studies, analyses, evaluations, grounds, etc made by BBG - SIMEX BULGARIA in relation to negotiations with potential financing institutions are presented in Working tools , Frame contents and Demo version of the studies in the field of corporate finance.
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