NTC’s private placement to a private equity investor
Niem Tin Co., Ltd (“NTC”) is a leading Vietnamese company specializing in information technology – communication – automation solutions. The Company currently bases in Hanoi, Vietnam and has a branch in HCMC with total employees of 150 people. In 2008, the Company reached the revenue of over VND100bn, a 12% increase in comparison to 2007.
To finance the company’s growth strategies, NTC appointed Tri Viet as the advisor for company’s capital-raising process in 2009. The investor is SEAF Blue Waters Growth Fund Limited (“Seaf”), a commercial investment fund established in 2007 with the fund size of US$20 million allocated for Vietnam. In April 2010, Loan Agreement was completed with the loan term of 5 years and possible funding option for the future.
Preparation
- Advise on capital structure;
- Analyse company’s capital need and cost of capital;
- Analyse effects of SEAF’s offer on company’s capital structure and profitability;
- Address risks associated with the funding.
Due diligence
- Coordinate the parties during Due diligence process;
- Assist NTC with document preparation according to required Due diligence check lists (Legal DD and Financial DD);
- Handle inquiries.
Negotiation and deal closing
- Negotiate on behalf of NTC with Seaf on principle terms of Term Sheet: investment amount, term of loan, interest rate, payment schedule, Financial Covenants and Protective provisions;
- Address key concerns from Financing Documents (include Loan Agreement, Mortgage Agreement, Share Mortgage Agreement, Personal Guaranty and Non-compete Agreement);
- Assist with negotiation on terms and conditions for the transaction.