TIGRcub® stands for
Generation Rights Certificate. You might think of it as a
securitized royalty or a revenue bond, where a company issues certificates that
provide a base interest rate return combined with a percentage of
future gross revenues over a set period of time. The focus is on the
top line revenue number.
This allows companies to access
institutional capital without suffering from equity dilution,
valuation issues, corporate governance arguments, etc. It is a debt
structure that offers both private and public companies the
opportunity to finance future growth, acquisitions, ESOPs, MBOs and
other corporate strategies with a flexible, sensible and securitized solution.
is a financing option that business managers should take a strong look at.
Unlike equity or mezzanine debt, which include equity or warrants
and can be dilutive to owners, a TIGRcub® is normally a strictly cash
offering. Since the focus is on top line revenue, there can be fewer
restrictions and covenants in a TIGRcub structure than traditional
There are several attractive features to
a TIGRcub®. Each offering is geared to the needs of the issuer, so
there is a great deal of flexibility in terms of structure. They can
be amortized or non-amortizing, for a fixed or variable term, there
are even perpetual TIGRcubs®. The buyers of these securities are
Qualified Institutional Buyers, so they are very sophisticated fixed
income professionals with capital to deploy.
serves as an origination and placement agent, working with each
client and Entrex to structure an appropriate offering, take the offering to market and get it
placed with the right investor. This is a simple, streamlined
process that usually takes between eight to twelve weeks from
engagement to funding.
If you or someone you know might benefit
from issuing a TIGRcub®, please have them contact us at the number
below. If you are a QIB and are interested in hearing more about
this novel yield-bearing instrument, we would be happy to share more
For more information on Entrex and how a TIGRcub works, visit www.entrex.net.