Project/Enterprise Profile

TENET’s bond financing model is capable of funding projects from virtually any industry or sector, given the projects ability to meaningfully deploy capital, generate revenues, and achieve positive free cash flow during the bond’s duration.

Our funded projects fit the following general parameters:
Product Offering: Structured Private Placement Investment Grade Bonds
Enterprise Size: Pre-Revenue to $250M annually
Capital Need: $20MM to $1B+
Bond Maturity: 1 to 5 years
Bond Rating: A+ w/ TENET’s proprietary credit enhancement methodology
Sector/Industry: Any
Company Attributes: Concept validation, experienced/talented management, ability to quickly and deploy capital (shovel ready), and a clear path to growth and positive free cash flow

Lower Overall Costs of Capital

TENET’s bond structuring grants entrepreneurs and project sponsors access to the capital markets through private placement investment grade rated bonds. We achieve investment grade ratings through a combination of our strict underwriting standards and credit enhancement methodologies used in our bond structuring. As a result, for the projects that meet our underwriting criteria, bonds are issued at, or near, prevailing shorter duration investment grade market rates, which are often substantially below traditional bank and non-bank lending rates.

Focus on Growing Your Enterprise

TENET’s bond funding model allows you to focus on executing your plans and growing your enterprise, not on servicing or maintaining debt covenants. Our model allows for up to 100% bond funding and, as part of our bond structuring, all interest payments (bond coupons), insurance premiums associated with bond structuring, and ongoing bond maintenance expenses are amortized and paid from the bond’s face value. This eliminates debt servicing requirements, restrictive negative covenants, and other acceleration events through the bond’s duration. At maturity, the bond principal can be either paid in full or refinanced through a variety of permanent financing solutions.

Expert Guidance & Partnership

TENET partners with each of our project sponsors to fully leverage our team’s extensive skill sets, experience, and connections to make your project a success well beyond the close of funding. Through our extensive network of strategic partners, advisors, and consultants, TENET provides deep industry insight and guidance in virtually any sector or geography. From developing the business plan and

Enhanced Credit Quality

Access to expansion capital is vital for any business. At the completion of our funding process, your enterprise will have a track record of successfully servicing a registered investment grade rated bond, dramatically increasing credit quality, and potentially allowing for an enterprise investment grade rating. Whether your business needs to refinance a portion of the bonds issued through our structuring or a new round of capital is needed for further expansion, this enhanced credit quality will allow for your enterprise to attain the needed capital more easily, and to do so at a lower cost of capital.

Preservation of Sponsor Equity

Most Venture Capital and Private Equity models require founders, entrepreneurs, or existing equity holders to dramatically dilute their ownership stakes. Through our bond funding model, sponsor equity is preserved through waterfall and equity claw back provisions included as part of financing agreements. TENET, and its investment partners, do require equity positions and board representation in our portfolio companies to maintain oversight and ensure successful bond repayment at maturity, however, we approach each transaction as a partnership and allow project sponsors the opportunity to claw back equity upon successfully reaching post funding benchmarks.

If you believe your project is a candidate for TENET’s proprietary bond funding model and can efficiently and meaningfully deploy TENET’s capital, please submit your project to our underwriting team for review.