Refinancing replaces existing debt with new debt, usually to lower cost, extend maturity, release equity, or change lenders and terms. It can also ‘take out’ short-term or construction finance with longer-term, lower-cost permanent debt once an asset is stabilised.
Well-timed refinancing reduces cost of capital and risk, and is often the planned exit for bridge or development finance.
Common across real estate and corporate debt.
Refinancing replaces existing debt with new debt, usually to lower cost, extend maturity, release equity, or change lenders and terms. It can also ‘take out’ short-term or construction finance with longer-term, lower-cost permanent debt once an asset is stabilised.
Common across real estate and corporate debt.
Refinancing replaces existing debt with new debt, usually voluntarily, to lower cost, extend maturity, release equity or change lenders. Restructuring renegotiates the terms of debt already in place, typically because the borrower is under financial stress. One is an opportunity-driven improvement; the other is a response to difficulty.
The strongest moment is usually once an asset or business has stabilised, when proven income supports cheaper, longer-term debt. Refinancing is also timed to take out maturing bridge or construction facilities. Well-timed refinancing reduces both the cost of capital and the risk carried into the next maturity.
Speak to a partner about how this applies to your transaction.
