What we do
Orion's advisory activities:
- -Financing Advisory: Orion advises corporates, financial institutions and sovereigns on their financing strategy. It advises its institutional customers on funding diversification, fixed income and equity financing in the public and private markets, and on funding transaction structuring. In the early 2000s, Orion has advised a number of banks in Lebanon on raising capital, and issuing preferred shares and fixed income securities. Orion is also very experienced in organizing IPOs and SPOs (Initial and Secondary Public Offerings) for emerging market companies
- -Licensing: Orion has significant experience in writing business models and obtaining operating licenses for financial institutions in different geographical areas
- -Mergers and Acquisitions: through its partners Orion has expertise in M&A transactions and has worked on a number of company disposals to private and institutional investors
- -Private Equity and Venture Capital Advisory: Orion has acted as advisor to companies and to private equity funds in specific transactions. It has expertise in the private equity and Venture Capital investment process and has channeled a number of investment opportunities to certain MENA based private equity funds
- -Debt restructuring: Orion has developed an expertise in advising over-indebted companies and companies in distress on debt restructuring, refinancing and rescheduling.
- -Project Finance Advisory: Orion has expertise (acquired individually through the partners) in developing financing structures for public and private projects
- -Rating Advisory: Orion has a deep understanding of the credit rating process and has guided MENA companies through the rating process with international rating agencies.
- -Risk Management: the Orion partners have extensive experience in risk management activities and Basel II and III implementation, as well as in constructing credit scoring models for all types of sectors
Debt Restrucuring Activity
Orion Financial Solutions has a strong track record in corporate debt restructuring/rescheduling, with experience gained in Lebanon and abroad. The firm has carried out a number of debt restructuring assignments in the last twenty years and has gained the trust of a number of company owners. The firm has classified the debt restructuring/rescheduling assignments by category:
Degree of Difficulty:
- Simple re-negotiation with lenders
- Re-negotiation with lenders + Need for operational road map
- Re-negotiation + Operational and financial restructuring +debt to asset swap
- Level 3 but higher degree of operational and financial restructuring and debt/asset swap
- Level 4 but with complete business overhaul +debt/asset swap + accompaniment (board presence)
Classification of Situation:
Turnaround: Not necessarily distressed but need for turning around the business. Business needs new financing to be managed properly and turn profits. Cost and efficiency improvements are visible.
Special Situation: Possibility and need for equity financing. Ways to obtain mezzanine financing from other sources than existing lenders. Possibility of convertible/warrant securities to be issued.
Creditworthy: There is some angle to gain control of the company, which would reassure lenders.Debt/equity exchange possible. Restructured debt/loans would produce interesting yields for lenders and investors. Business needs debt repayment delays.
Distressed: Business is suffering and needs help. Reasons for distress must be identified and assessed to find solutions. Management reshuffle/restructuring is necessary. Industry downturn must be addressed with ways for diversification. Recovery possible with proper financial re-organization.
Bankruptcy: No salvation possible. Bank write off-inevitable. Liquidation process looming. Ways for loan recoveries must be found.
Rating Advisory
OFS' partners have a significant experience in credit ratings. Nicolas Photiades has worked as rating analyst for one of the larger US rating agencies and has worked as a senior rating advisor for European, MENA and South East Asian corporates and financial institutions. Dr. Ghassan Chammas has significant expertise in Islamic banks and Sukuks rating and scoring and has recently worked alongside Nicolas Photiades in the development of a European rating agency. Nicolas Photiades was also a pioneer in rating advisory in the MENA region, as he advised on behalf of a major Saudi corporate on obtaining in rating back in 2011. This later assignment was the first rating advisory assignment awarded to a Lebanese bank (Blominvest Saudi Arabia) by a major Riyadh listed Arab corporate.
The OFS partners are seeking to tap their expertise in ratings as well as draw on their relationship with the rating agencies, in order to guide issuers and borrowers from all sectors through the rating process. OFS has a strong knowledge of the different rating methodologies and of the rating process within rating agencies, which allows for efficient guidance and documentation compilation. OFS main task would be to help internal staff compile quantitative and qualitative information, and respond to questions and requests by the rating agencies. The rating advisory process' main goal is to fully prepare the management team of the entity to be rated on how to clearly articulate and express their company's strategy, qualitative considerations and to justify their financials.
OFS' rating advisory service is closely linked to its capital markets development activity in the MENA region, as a rating is a vital pre-requisite to entering the capital markets for the first time. Ratings have a significant impact on an institution. They have become an increasingly influential force and are driven by many factors:
The Rating Process
Comprehensive preparation for the initial rating significantly reduces the workload for the annual meeting.
The typical schedule or obtaining a credit rating requires 12-14 weeks.
This should include the 4-6 week time frame requested by the rating
agency to analyze and determine the rating some rating agencies, principally Fitch, carry out “private ratings”, which are not disseminated to the public. Therefore the rating process in that particular case stops at step 4.
