Debt Refinancing

Debt Refinancing – Advantages & Purposes

No Upfront Fees to Solve Multi-Million Dollar Problems

Your Total Investment is a 15 Minute Video Call

SCG provides debt refinancing worldwide. All our corporate loan structures provide the lowest cost funding and most favorable terms available. 

When local bank and traditional financing sources are pushing back on their lending needs, pull back lines of credit or won’t refinance debt, some borrowers have fallen victim to Toxic Loans with an unethical lender. 

Debt Refinancing & Corporate Loan Structures

Dual Purpose Loan: In some scenarios, the board may elect to monetize debt refinancing as an opportunity to leverage the advantages available in a corporate loan structure. At the same time, the company take advantage of funding the company’s international scale-up including the following scenarios:

NOTE: All company goals and needs are situational – Provided herein are only a few isolated scenarios.

1. Pre-revenue – A CEO may wish to bonus hard-working executives long before the company is turning a profit. 

2. Pharmaceutical Company Example – A pre-revenue firm has a major drug approval pending and is burning cash. 

3. Mining Company ExampleA pre-revenue company wants to develop its new mineralization discovery. It needs cash to increase its land position, drill additional sites, and support its working capital.

4. Company wants to make a large real estate purchase. Paying cash will enable the company to secure purchase at a discounted price, lock in a low fixed-interest rate including more favorable terms. 


  • Banks Are Pushing Back
  • Bank No Longer Wants the Debt
  • Bank Are Increasing Interest Rates
  • Bonds Moving to Junk Status
  • Expensive Debt
  • General Working Capital
  • High Burn-Rate
  • Lock-down Terms up to 10 Years
  • Lock-down Low Fixed-interest Rates
  • Lock-down Quarterly Interest Payments
  • Negative Cash Flow
  • Pre-Revenue Stage
  • Replenish Balance Sheets
  • Refinance Debt
  • Unable to Roll Over Debt


  • Acquisitions
  • Build Outs
  • Clinical Research
  • Construction
  • Exploration
  • Land Purchases
  • International Scale-up
  • Research & Development


  • Crisis Intervention
  • Drug Approval
  • Equipment Purchase
  • Emergency Issue
  • Loan Covenant Breach
  • Pilot Testing
  • Regulatory Fines
  • Research Stage
  • Roll Up Strategy
  • Scale-up Strategy
  • Stagnation
  • Toxic Loan Bail-Out

Have you fallen victim to a toxic loan?

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Legal and Ethical Aspects of Death Spiral Financing 

Alina Marian and Dr. Cheryl Arflin 

College of Business, Florida Atlantic University

How Does Death Spiral Financing Work?

“In death spiral finance a lender typically agrees to loan a publicly-traded company some amount of cash. In exchange the lender takes a convertible debenture with typically a reasonable interest rate.” 

The money, however, “doesn’t come without a catch: the lender can convert his/her debenture at any time into shares of common stock. In typical fashion, such an offer will come without a predetermined number of shares but instead with a share conversion rate that is a moving target which is always less than the prevailing market rate. That way, when the investor  [unscrupulous lender] sells the shares –  will always profit, even on the downside.”

Whether or not the investor decides to short the stock has significant consequences on the company’s stock value.  From a legal point of view, short selling frequently leads to the  investors indirectly acquiring five percent or more of the target company. By short selling and causing the dilution of the company’s stock, the investors can gain control of the company, similarly to the control held by issuers or significant investors.

In a famous case in 2003, Thomas Newkirk, then the Associate Director of the SEC’s Division of Enforcement, stated the following in relation to toxicity of “death spiral” finance:

“Certain convertible securities, particularly those referred to as ‘toxic’ or ‘death spiral’ convertibles, present the temptation for persons holding the convertible securities to engage in manipulative short selling of the issuer’s stock in order to receive more shares at the time of conversion.”