Capital Raising and Financing Transactions
New funding can give a business time to recover, but its terms may also increase pressure on cash flow or change creditor rights. Gracen Law combines capital advisory and legal support for refinancing and distressed financing in Kenya. We help businesses, project sponsors and capital providers assess the proposed funding, negotiate changes to existing commitments and document a workable transaction.
Seek advice before signing new facilities, offering additional security or promising revised payments. An early review can reveal consent requirements, competing claims and obligations that affect whether the proposal can proceed.
A refinancing mandate starts with the reason existing arrangements no longer fit: an approaching maturity, expensive debt, delayed receipts, a covenant problem or a wider operational shortfall. We review the proposed solution alongside the business's immediate cash requirements and existing agreements. Where financial analysis is included, we agree the forecasts, assumptions and specialist inputs required to compare options. Fresh borrowing should be assessed against a realistic recovery or repayment plan.
Refinancing and Distressed Financing
We support replacement facilities, maturity extensions, revised repayment schedules and negotiated changes to covenants. The review covers pricing, fees, repayment, default triggers, guarantees and continuing obligations. We also identify which existing consents, releases or notices are required so that replacing one facility does not leave unresolved liabilities under another.
We help prepare a clear proposal for creditor discussions, supported by the agreed commercial and financial information. Depending on the circumstances, negotiations may address waivers, payment deferrals, standstill terms or additional funding. We distinguish an interim accommodation from a lasting amendment and record the conditions, deadlines and commitments attached to each.
New funding may require changes to security, creditor priority or intercreditor arrangements. We assess these against existing documents and the proposed transaction.
Where financial distress affects directors' decisions, we identify the matters requiring legal attention, including creditor interests and the implications of new commitments. Financial, insolvency and other specialist work is coordinated where needed.
We first identify the decision deadline and review the facilities, security, financial position and proposed funding. We then agree the issues to raise with lenders, investors or other creditors and prepare the relevant supporting material. Negotiation and documentation proceed against that plan. We track approvals, releases and conditions before completion, and identify the monitoring obligations that continue under the revised arrangements.
The existing facilities, guarantees and security may restrict borrowing, collateral or asset disposals. We establish the entities, assets, defaults and creditor notices involved before assessing new funding. Bridge or rescue terms are tested for pricing, control rights, repayment triggers, duration and milestones, including the route to repayment or a longer-term restructuring.
Creditor permissions, standstill terms, releases and amendments are considered together.
New financing documents must align with business transfers, group changes and the wider recovery plan. The scope can continue through milestone changes, refinancing and implementation decisions. Financial forecasts, cash-flow analysis and recovery feasibility remain inputs from the professionals responsible for that work.
Related Gracen Law services
Corporate Restructuring and Distress addresses ownership, governance, assets and operating changes. Development, Credit and Blended Finance, Project Financing, Tax and Dispute Resolution support connected creditor and transaction matters.
More in this section
Your legal team
Consultation
Tell us the funding required, the immediate deadline and the position of existing creditors.
We will agree the review and negotiations needed before further commitments are made.
Communications are protected by legal professional privilege and never shared with third parties.
Questions
Seek advice before a maturity, expected covenant breach or cash shortfall forces an immediate decision. Share the existing agreements, financial position and any proposal already received. Earlier engagement provides more time to examine terms and prepare discussions, although the options depend on the circumstances.
It may be possible, but new commitments need careful assessment. Existing creditor rights, security, consent requirements and directors' obligations can affect the transaction. We review the funding proposal alongside those constraints and any restructuring needed. Funding remains subject to the capital provider's decision.
That depends on its wording. A waiver may address a particular event for a limited period while leaving other obligations unchanged. We review the scope, conditions and expiry, and identify whether a separate amendment is needed for the repayment or covenant changes you intend.
Yes, subject to conflict checks and an agreed scope. The mandate can cover diligence, proposed funding protections, creditor arrangements and transaction documents. Our advice reflects the interests of the client we represent; representing one participant does not permit us to represent every party.
The urgency should inform the review, but it should not obscure the effect of the proposed terms. Management should understand cost, security, control rights, repayment triggers and required consents. We focus the legal assessment on material risks and the decisions needed to evaluate whether the funding supports the proposed recovery.
That depends on the existing security, contractual restrictions and the approvals required for the transaction. Priority arrangements may also need negotiation. We examine the actual documents and proposed assets so that the business and funding parties understand what must be agreed before the new security can be implemented.
Not necessarily. New liquidity and corporate restructuring may need to operate together. Funding can support a recovery plan, while corporate measures address ownership, governance, asset transfers or operating structure. We keep the two legal workstreams coordinated and distinguish the financing terms from the wider restructuring decisions.
Provide the proposed funding terms, existing facilities and security documents, relevant defaults or creditor notices, the group structure and the outline recovery plan. The request will be tailored to the matter. Clear information about immediate deadlines helps prioritise the legal issues without making assumptions about the business’s financial position.
