Working capital for public companies.
Ten committed and market-based ways a listed issuer can fund working capital — from a $50M revolver to a $10B commercial paper program. We help you pick the right instrument, structure it, and execute.
Pick the right instrument.
Cost is only one input. Rating impact, dilution, execution speed, and covenant burden usually matter more.
Private Investment in Public Equity
Private Investment in Public Equity — negotiated block of common, preferred, or convertible sold to a small group of institutional investors, followed by a resale registration.
- Fast, certain execution when markets are choppy
- Discount to VWAP; may include warrants
- Signaling risk if perceived as distressed
Revolving Credit Facility
Syndicated senior secured or unsecured revolver from a bank group. Committed liquidity to fund seasonal swings, acquisitions, or general corporate purposes.
- Lowest all-in cost of committed liquidity
- Financial covenants (leverage, interest coverage)
- Commitment fee on undrawn capacity
Commercial Paper Program
Unsecured short-term notes (1–270 days) sold to money-market investors. Requires investment-grade rating and a backup revolver equal to program size.
- Cheapest form of short-term funding
- Requires IG rating (A-2 / P-2 or better)
- Rollover risk in dislocated markets
Asset-Based Lending (ABL)
Revolver sized against a borrowing base of receivables, inventory, and sometimes equipment. Advance rates float with collateral; useful for cyclical or leveraged issuers.
- Availability scales with the business
- Springing covenants only when excess availability is low
- Field exams and appraisals required
Receivables Securitization
Sell a pool of receivables to a bankruptcy-remote SPV that issues rated notes or commercial paper conduit funding. Moves receivables off-balance-sheet (subject to accounting review).
- Cost inside unsecured debt for the same rating
- True-sale legal opinions and servicing setup
- Concentration and dilution triggers
At-The-Market (ATM) Offering
Sell newly issued shares directly into the open market through a broker over time. Priced at prevailing market, minimal discount, and drawn only when capital is needed.
- Lowest-friction equity issuance for a listed company
- Dilutive to existing shareholders
- Requires an effective shelf (Form S-3)
Convertible Notes
Senior unsecured notes convertible into common stock at a premium. Below-market coupon in exchange for equity optionality; often paired with a call-spread hedge.
- Coupon 150–400 bps below straight debt
- Potential future dilution above the conversion price
- Complex accounting under ASU 2020-06
Senior Notes / Bonds
5- to 30-year unsecured notes placed with institutional investors under Rule 144A or SEC-registered. Refinances short-term debt and terms out working capital needs.
- Locks in long-dated fixed-rate funding
- Make-whole call and incurrence covenants
- Ratings-sensitive pricing
Supply Chain Finance
Buyer-led reverse-factoring program that lets suppliers get paid early at the buyer's credit rating while the buyer extends DPO. Improves cash conversion without new debt.
- Frees trapped cash inside the CCC
- Disclosure required under FASB ASU 2022-04
- Rating-agency scrutiny at scale
Shelf Registration (S-3)
Universal shelf on file with the SEC lets a well-known seasoned issuer take debt or equity to market on same-day notice for up to three years. Not capital by itself — a launchpad.
- Same-day access to public markets
- Requires WKSI eligibility and current filings
- Ongoing 10-K/10-Q/8-K currency obligations
Four questions decide the instrument.
How permanent is the need?
Seasonal or bridge → revolver, CP, ABL. Structural → term notes, converts, equity.
How rating-sensitive are you?
IG issuers unlock CP, unsecured notes, and tighter revolver pricing. HY leans ABL, secured notes, and structured programs.
How urgent is close?
Same day → shelf takedown, ATM, existing revolver. 2–4 weeks → new revolver, PIPE. 6–10 weeks → registered bond deal.
How much dilution is acceptable?
Zero → debt only. Some → converts, warrants. Comfortable → ATM, PIPE, follow-on.
Structuring your next facility?
Our capital-markets desk works with treasury and CFO teams at IG and HY issuers. Call (307) 420-2091 or email Sales@Maximusadvance.com.