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VISION PREVIEW EN

DebtBay’s Mission

„Issuing Debt is not a game, it’s a science – that requires transparency“

DebtBay’s Mission is to create quantitative and fact-based transparency at international debt capital markets.

We focus on two key aspects of corporate finance:

 

      – Leverage ratio: What portion of debt maximizes the value of a company and the market capitalization subsequently?

      – Interest rate: Which interest level is appropriate for a specific company?

 

The analysis of those aspects answer the key question of corporate finance
In doing so we deliver a precise analysis on whether a company’s current capital structure is efficient or whether the same leverage ratio could create higher value.

Based on that mission, DebtBay developed a strategic vision:

Bond-Ranking

DebtBay’s bond ranking provides a scientific assessment of the success of a bond issuance from the perspective of the issuer. For the first time an exclusively data-based statement about the quality of the pricing (determination of the interest rate), the allocation and the marketing of the respective bond is made available.

The DebtBay Ranking consists of 2 sub-components:

Pricing: Was there a fair pricing at issuance that did not take advantage of either the issuer or the investors?

Timing: Was window of opportunity chosen well from the issuer’s point of view?

Leveraged-Based-Value (LBV)

The Leverage Based Value (LBV) evaluates the contribution of corporate debt to market capitalization and share price of a specific company subsequently. In other words: which share price can we expect, if the company under review would be unlevered (fully equity financed)?

The LBV provides valuable information as to whether a company can sustainably increase its value by raising debt capital or whether borrowing capital is counterproductive, which merely increases the risk without increasing the company’s value. In addition, the LBV is an important decision-making tool as to whether companies should cover additional capital requirements with equity or debt.

DebtBay Cockpit

DebtBay Cockpit is a combination of bond ranking and LBV, especially since the determination of an optimal capital structure is based on an iterative process of both concepts. Based on that combination valuable conclusions can be drawn regarding the efficiency of a capital structure and the future steering of the capital structure. A special feature of the DebtBay Cockpit is the ability to simulate future capital structures, for example in the run-up to an intended M&A transaction.

Multidimensional cockpit

DebtBay’s Multidimensional Cockpit (MDC) is a fundamental extension of the DebtBay Cockpit. DebtBay’s MDC analyzes all types of equity and debt capital, such as

   – Senior bonds

   – Subordinated bonds

   – Secured/Covered bond

   – Convertible bonds

   – Syndicated credit agreements

   – Commercial Paper

   – Tokens (crypto currencies)

The MDC is able to demonstrate it’s users concrete alternatives to planned financing transactions. The comparison of the different alternatives allows the issuer to make a fact-based decision when selecting the different financial instruments.

Virtual CFO

DebtBay’s ultimate vision is the establishment of Virtual CFO. This proprietary system for managing a company’s capital structure is based on artificial intelligence and will be the central decision-making tool of corporate finance.

Virtual CFO continuously screens the international capital markets for the best opportunities to raise capital. Most attractive sources of capital will be presented proactively to the „natural“ CFO. A capital structure optimized in this way maximizes income generated in the operating business. At the same time, Virtual CFO also acts as a risk management tool by identifying risks in the capital structure at an early stage and making suggestions for mitigation.

Virtual CFO will have an automated connection to various electronic trading platforms. This enables companies to implement the virtual CFO’s proposals in a timely, transparent manner and with little use of costs and resources.