Grand Canal Capital Partners
BPA Project · Debt Origination
For Lender Review
Song Capital
Mark up · tighten · add screening criteria
BPA Pre-Qualifying Questionnaire
GCCP's pre-mandate borrower intake instrument. Circulated to Song Capital
for review, correction and addition of any further screening criteria the
lender wishes pre-applied to all GCCP-introduced opportunities.
Borrower
Sponsor / Group
Sector
Jurisdiction
Date
Lead Adviser
Source of Opportunity
Stage
Purpose (Borrower-Facing)
One completed form gives GCCP enough to decide whether to proceed to
detailed structuring, request Song pre-clearance, or politely decline.
Borrowers, sponsors and their advisers should work top-to-bottom.
Sections A–F build a complete picture; Section G is reserved for Song's
own additions.
What We're Asking Song
Confirm or correct each assumption shown in italics. Where Song would
reject before reading further (e.g. floating rate, sub-€100m), that gate
is flagged with a red border. Where the answer is "case-by-case", say
so — GCCP will route those to pre-clearance rather than self-screen.
How Song Should Use It
Three actions: (1) strike any question that is not a
Song concern; (2) edit any italic assumption GCCP has
mis-stated; (3) add any pre-screen test GCCP has missed
via Section G.
Hard Gates
Pre-Screen Knock-Outs
If any of these fail, GCCP does not introduce
Six binary tests GCCP applies before a borrower conversation goes any further. Each reflects what GCCP currently understands as a Song hard rule. Song reviewers: please confirm each is in fact a hard rule, or indicate the (rare) exception path.
G1 · Facility Size Hard Gate
Is the facility ≥ €/£100m drawn at close?
GCCP assumption: Song primary ≥€/£200m · Flex €/£150–199m · Exception €/£100–149m · Reject <€/£100m. Anything sub-€100m is routed away from Song or rejected.
≥ €/£200m
€/£150–199m
€/£100–149m
< €/£100m
Song to confirm: Is the absolute floor still €/£100m for senior term and ground debt? Any sector where the floor lifts (e.g. data centres, BESS)?
G2 · Rate Type Hard Gate
Is the borrower seeking fixed-rate (or capped-indexed) debt only?
GCCP assumption: Floating-rate is an automatic reject. SONIA/EURIBOR/SOFR floaters cannot be MA-eligible.
Fixed
Capped-indexed
Floating
Song to confirm: Any structures where a short floating bridge into a fixed take-out is acceptable for engagement?
G3 · Hyperscaler / IG-self-funder Hard Gate
Is the borrower a hyperscale operator or IG-rated self-funder?
GCCP assumption: Hyperscaler borrowers (AWS, Equinix BBB+ IG REIT) self-fund — zero Song participation. A hyperscaler tenant backing third-party real estate is fine.
Hyperscaler borrower
Hyperscaler tenant
Non-hyperscaler operator
Song to confirm: Other categories of self-funder GCCP should screen out at intake?
G4 · Indexation Mechanics Hard Gate
For ground debt: is income fixed-uplift (EUR) or capped-RPI/CPI (GBP)?
GCCP assumption: EUR ground debt = fixed uplifts only (1.5–2.5%/yr); never CPI/HICP. UK = RPI/CPI with 0% floor and 4–5% cap. Uncapped indexation = reject. Irish commercial leases post-1 March 2010: cannot legally contain CPI/HICP per L&T (Amendment) Act 2009 — open-market reviews mandatory; materially relaxes the gate for post-2010 Irish CRE.
Song to confirm: Is the post-2010 Irish CRE relaxation correctly stated? Any equivalent relaxation for French / German jurisdictions?
G5 · Product Routing Hard Gate
If the asset is BESS / battery storage: is the borrower seeking ground debt?
GCCP assumption: Ground debt is not applicable to BESS — depreciating plant, not real estate. Senior term loan only. Same logic likely applies to other depreciating-plant infrastructure.
BESS + Ground Debt request
BESS + Senior Term
Non-BESS
Song to confirm: Other depreciating-plant categories that are senior-term-only (e.g. hydrogen, EV charging, fibre)?
Section A
Asset & Borrower Profile
What is being financed and who owns it
Song lends against real assets with insurance-grade income; the underlying bricks, plant or infrastructure matter more than the borrower's balance sheet. Confirm or tighten each italic assumption.
A1 · Asset Class Sector Fit
What is the asset class and sub-sector?
GCCP routing: Tier 1 (BPA anchor) = utilities, wind, solar, BESS, hydrogen. Tier 2 (strong) = hospitals, grocery, pubs/leisure, care homes, ground debt UK, healthcare Ireland. Hotels, fibre/digital, theme parks = conditional / case-by-case only.
Song to confirm: Is the tiering above current? Sectors GCCP should not be sourcing in at all today?
A2 · Asset Description Scale & Vintage
How many assets, total GIA / MW / beds / keys / stores, and year(s) built?
GCCP assumption: Song values diversification within a facility — a 50-store freehold portfolio is structurally different from one trophy site. Single-asset deals tolerated where IG tenant + long WAULT.
A3 · Geographic Spread Jurisdiction Fit
Country and regional concentration of assets?
GCCP assumption: Core markets UK, Ireland, France, Germany, Iberia, Netherlands, Nordics. Non-core jurisdictions flagged at intake.
Song to confirm: Any jurisdictions GCCP should not be sourcing in (e.g. CEE, US ex-USD product, peripheral EU)?
A4 · Freehold vs Leasehold Product Fit
What % of the portfolio is freehold? If leasehold, what is the unexpired term?
GCCP assumption: Freehold = ground debt eligible (30–55yr, zero covenant). Long leasehold (≥125yr unexpired) = ground-debt-eligible in practice. Short leasehold = senior term only.
A5 · Most Recent Valuation LTV Anchor
Most recent market valuation: value, date, appraiser, methodology?
GCCP assumption: Reputable independent appraiser (Big 5) required. Valuation >18 months old refreshed before HoTs.
Song to confirm: Acceptable appraiser panel? Is 18 months still the staleness threshold?
A6 · Operational Status Stabilisation
What % of the asset base is stabilised operational income vs lease-up vs development?
GCCP assumption: 100% stabilised = cleanest. ≥25% operational with IG tenant covenant = workable. Pure development triggers the full 8-point development checklist (Section A7).
100% stabilised
≥25% operational
<25% operational
A7 · Development Checklist If <100% Stabilised
All 8 of: ≥25% operational · IG tenant committed · GMP contract · 10% capex performance bond · monitoring surveyor · sponsor guarantee · long-stop date · cash trap mechanism — yes / no per item?
GCCP assumption: All 8 items must be met before GCCP advances a development-backed deal. Any "no" requires Song pre-clearance.
Song to confirm: Is the 8-point list complete and current? Items Song would weight more / less heavily?
A8 · ESG Credentials Insurer Screen
BREEAM / EPC / energy intensity / taxonomy alignment? Brown-to-green capex plan?
GCCP assumption: Song's BPA insurer base screens for EU taxonomy alignment and SFDR classification. "Brown" assets at BBB- and below face rising capital charges.
Song to confirm: Specific minimum thresholds (e.g. EPC B/C, BREEAM Very Good) GCCP should pre-screen against? Any insurer-level red lines?
A9 · Ownership Structure Security Path
How is title held? SPV, ring-fenced PropCo, listed REIT, regulated entity, sovereign subsidiary?
GCCP assumption: Song needs a clean security path — ideally PropCo / SPV holding freehold, separated from operating risk. Regulated / sovereign ownership adds covenant strength.
Section B
Income Profile & Counterparty Quality
The pillar that wins or loses BPA placement
The single most important pillar. Song qualifies for Matching Adjustment (MA) benefit only if the income stream is fixed, long, and from an investment-grade or quasi-IG payer.
B1 · Rental / Revenue Income MA Eligibility
Who pays the rent or underlying revenue? Top 5 tenants / counterparties by income share?
GCCP assumption: MA eligibility depends on payer credit. Name and concentration matter. Government tenant at 30% of income is structurally different from 30 unrated SMEs.
B2 · Tenant / Counterparty Ratings IG Gate
Published S&P / Moody's / Fitch ratings for top tenants? If unrated, proxy (parent guarantee, revenue, sector)?
GCCP assumption: IG (BBB-/Baa3 or stronger) = full MA benefit. Crossover (BB+) = case-by-case. Sub-IG can still work for ground debt with the right structure.
Song to confirm: Minimum implied / shadow rating GCCP should require for unrated counterparties? Cut-off for sub-IG ground debt?
B3 · WAULT Duration Fit
Weighted Average Unexpired Lease Term (to break and to expiry)?
GCCP assumption: Ground debt wants WAULT ≥ tenor + 5yr buffer. Senior term wants WAULT ≥ 10yr. Short WAULT = refinance risk = insurer concern.
Song to confirm: Is the +5yr buffer rule current? Any tenant-rating combinations where shorter WAULT is acceptable?
B4 · Rate Type on Existing Income Indexation
Is income fixed, RPI/CPI-linked (with cap & floor), upward-only, market-review, or merchant/spot?
GCCP assumption: Fixed or capped-indexed = MA eligible. Uncapped CPI / pure market review / merchant = structural problem.
Fixed
RPI/CPI capped
Upward-only
Uncapped CPI
Merchant
B5 · Indexation Mechanics EUR / GBP split
For GBP: cap / floor / frequency on the index? For EUR: fixed uplift %/yr?
GCCP assumption: GBP standard 0% floor, 4–5% cap, annual or 5-yearly. EUR standard 1.5–2.5% p.a. fixed uplift — never CPI/HICP. Irish post-2010 commercial: open-market reviews mandatory.
B6 · Rent Cover / ICR Covenant Headroom
Current rent cover (EBITDAR/rent) or ICR at asset and group level?
GCCP assumption: Ground debt 1.4x cash trap / 1.3x default. Senior term 1.4x/1.3x. Target 2.0x+ going-in for cushion.
Song to confirm: Are the 1.4x/1.3x triggers still standard? Any sectors where Song flexes (e.g. PRS at 1.2x)?
B7 · Contract Protections Covenant Strength
Rent deposit / bank guarantee / parent guarantee / step-in rights / break penalty structure?
GCCP assumption: Institutional lease protections reduce re-let risk and strengthen MA case. Unusual break rights or mutual termination clauses flagged at intake.
B8 · Revenue Concentration Risk Counterparty Mix
Top 3 tenant / customer concentration (% of total income)? Any single-tenant buildings?
GCCP assumption: Single-tenant IG = strong (Morrisons, Circle Health pattern). Single-tenant sub-IG = weaker. Diversified SME = sector-dependent.
Section C
Existing Debt Stack
Refi mechanics · consent pathways · timing
What's on the balance sheet today, what's maturing, and what security is already in place. Determines refinancing complexity, consent pathways, and whether Song is being asked to replace one tranche or the whole stack.
C1 · Total Gross Debt Stack Overview
Total drawn and committed debt across all facilities at borrower and group level?
GCCP assumption: Establishes context. Alongside valuation (A5), gives a pro-forma LTV pre- and post-transaction.
C2 · Tranche-by-Tranche Breakdown Refi Map
Per tranche: lender(s), facility size, margin, rate type (fixed/floating/bond), currency, original tenor, maturity, covenants, amortisation?
GCCP assumption: The single most diagnostic table at intake. A maturity wall, a floating-rate tranche, or a springing trigger frames where Song best fits in the stack.
C3 · Security & Ranking Structural Fit
What security is pledged today? First-ranking? Shared with other lenders? Negative pledge in place?
GCCP assumption: Song is senior-secured first-ranking only. Existing second-lien or intercreditor arrangements understood before HoTs.
Song to confirm: Any structures where pari-passu with existing senior is acceptable (e.g. paydown-and-replace)?
C4 · Prepayment / Make-Whole Exit Cost
Any prepayment penalties, make-whole clauses, or Spens on existing facilities / bonds? Expected break cost?
GCCP assumption: Determines whether refinancing now is economic. A bond at 6.5% with 5yr to go may cost more to break than the saving from refi to 5.2% fixed.
C5 · Incumbent Lender Relationships Consent Risk
Who are the relationship banks / bond investors today? Pending covenant waivers, amendments, or strategic reviews?
GCCP assumption: Consents can gate timing. A sponsor in a strategic review or carve-out can slow refinancing by quarters.
Section D
Financing Sought
Borrower request · product routing
What the borrower actually wants. The answers here map onto Song's senior-term and ground-debt credit boxes, and shape the structure of any introduction.
D1 · Purpose of Facility Use of Proceeds
Refinance, acquisition finance, capex, distribution/recap, M&A, sale-and-leaseback, or green transition?
GCCP assumption: Refi and acquisition finance are sweet spots. Pure distribution/recap is harder. SLB is the canonical ground debt trade.
Refinance
Acquisition
Capex
SLB
Pure recap
Song to confirm: Is pure recap a hard "no" or case-by-case with sponsor quality?
D2 · Facility Size Scale Fit
Target size (min / target / max)? In what currency?
GCCP assumption: Primary ≥€/£200m · Flex €/£150–199m · Exception €/£100–149m · Reject <€/£100m. Largest single deals £750m–£1.25bn.
D3 · Tenor Duration Match
Target tenor? Bullet or amortising?
GCCP assumption: Senior term 10–30yr bullet. Ground debt 30–55yr fully amortising. <10yr is bank / debt-fund product.
D4 · Rate Structure Sought Insurer Match
Fixed-rate coupon? Indexed? If indexed, what mechanism and what cap/floor?
GCCP assumption: Fixed-rate or capped-indexed only. Floating or uncapped-inflation cannot be placed.
D5 · Target LTV Structural Fit
Target loan-to-value at closing? Borrower's equity contribution?
GCCP assumption: Ground debt 30–40% typical, max 45–50% (Central London 50%). Senior term 40–50% standard; up to 55–60% for PRS/BTR.
Song to confirm: Are the PRS/BTR 55–60% bands current? Any sectors where Song will go higher than this?
D6 · Covenant Appetite Product Fit
Zero covenant (ground debt), standard covenants (senior term, 1.4x/1.3x), or covenant-lite only?
GCCP assumption: Covenant-lite is not a Song product. Full-covenant senior term or zero-covenant ground debt only.
D7 · Expected Pricing Calibration
What pricing is the borrower currently assuming (bps over swaps or absolute all-in)?
GCCP assumption: Song range ~250–350bps over Mid-Swaps. Borrower at 150bps (bank pricing) or 500bps (debt fund) means a conversation gap to close.
Song to confirm: Current spread range by product (ground debt vs senior term)? Any sectors trading materially wider/tighter?
D8 · Security Package Offered Structural Fit
Freehold pledge? Share pledge on SPV? Parent guarantee? DSRA? Capex escrow?
GCCP assumption: Institutional-quality security: first-ranking charge, 12-month DSRA, capex escrow for operational assets.
Section E
Sponsor & Covenant Strength
Track record · balance sheet · regulatory status
Who stands behind the borrower? Song underwrites to a "would a pension fund trust this sponsor for 30 years?" standard. Track record, balance sheet and regulatory status all feed the covenant picture.
E1 · Sponsor Identity Institutional Screen
Ultimate beneficial owner(s)? Listed / PE / sovereign / insurance / strategic?
GCCP assumption: Listed plc, sovereign, regulated utility and institutional PE = strong. Family office, single-asset SPV, undisclosed UBO = diligence-heavy.
Song to confirm: Sponsor categories that are de-facto excluded (e.g. specific PE houses, jurisdictions of UBO)?
E2 · Sponsor Track Record Sector Expertise
Years operating in this sector / geography? Prior deals of comparable size?
GCCP assumption: Song wants an operator, not a passive investor. Sector-specific track record reduces underwriting discount.
E3 · Sponsor Balance Sheet Guarantee Capacity
Sponsor net assets, available liquidity, and leverage at holdco level?
GCCP assumption: Guarantees are only as good as the balance sheet behind them. Listed fund >50% gearing = over-geared and fails pre-screen unless incremental ≥€/£150m and standalone PropCo.
E4 · Guarantees Offered Structural Fit
Personal guarantee? Parent guarantee? Performance bond? Completion guarantee (development)?
GCCP assumption: Development-backed facilities require sponsor guarantee. Operational senior term typically wants parent guarantee or strong SPV only.
E5 · Regulatory Status Covenant Quality
Is the borrower / sponsor regulated (utility, healthcare, financial services)? Sovereign-backed?
GCCP assumption: Regulated utility cashflows (CRU, Ofwat, Ofgem) and sovereign-backed revenues = pension-grade. Material lift to counterparty quality.
E6 · Strategic Review / M&A Process Risk
Any live strategic review, sale process, public offer, or IPO at sponsor or asset level?
GCCP assumption: M&A-driven refinancings create urgency but also process risk. Advisers, timeline and decision milestones flagged at intake.
Section F
Catalyst & Timing
Why now · process anchor · hard stop
Why now? Without a catalyst, deals drift. Song's placement cycle runs roughly 8 weeks from Heads of Terms to Exchange, plus T+5 to Completion. Borrowers should plan backwards from a hard event.
F1 · Primary Catalyst Driver
What is the single most important event driving the financing?
GCCP assumption: Maturity wall, M&A completion, IPO proceeds, sale closing, capex deadline, regulatory licence, rating trigger, sponsor exit.
F2 · Target HoTs Date Process Anchor
When does the borrower need Heads of Terms signed?
GCCP assumption: Indicative DD cycle 8 weeks HoTs→Exchange + T+5 Completion. Back-solve from hard stop.
Song to confirm: Is 8 weeks still the realistic HoTs→Exchange window for a clean credit? What stretches it?
F3 · Target Completion Date Hard Stop
What is the drop-dead date for funds in hand?
GCCP assumption: Maturity, SPA long-stop, regulatory deadline, or publicly disclosed refinancing window.
F4 · Process Type Competitive Dynamics
Bilateral, limited process (3–5 lenders), full auction, or public bond-style?
GCCP assumption: Bilateral / limited = sweet spot. Full auction against bank syndicates compresses margin below BPA appetite.
Bilateral
Limited (3–5)
Auction
Public bond
Song to confirm: Are full auctions ever competed by Song, or always declined?
Section G
Song Capital — Reviewer Notes
Mark up · add · correct · return to GCCP
Reserved for Song Capital. Anything GCCP has missed, mis-stated or over-stated above belongs here.
G1 · Hard Rules GCCP Has Mis-Stated
Any of the six Hard Gates (G1–G6) Song would tighten, relax, or remove? Any new hard gate GCCP should add?
G2 · Sectors GCCP Should Stop Sourcing
Sectors / sub-sectors where Song does not want GCCP introducing opportunities at all today, irrespective of borrower quality?
G3 · Sectors Song Wants More Of
Areas where Song's appetite has grown / pockets of insurer demand GCCP should be sourcing into more aggressively?
G4 · Borrower Categories De-Facto Excluded
Sponsor types, ownership structures, jurisdictions of UBO, or named entities GCCP should pre-screen against. Re-confirmation of standing exclusion list welcome.
G5 · Pricing & Structural Updates
Updates to spreads, LTV bands, ICR triggers, DSRA / capex-escrow expectations, or covenant standards GCCP has not captured.
G6 · Process & Timing Realism
What stretches the 8-week HoTs→Exchange window in practice? Process types Song will not engage with?
G7 · Anything Else GCCP Should Be Asking
Free-form. Questions Song would put to a borrower at this stage that GCCP has not thought to ask.