Holding Company
Public company, primarily focused on cannabis, had a large loan mature and needed to quickly turn around a commitment to replace it. We were able to provide commitment in 2-3 days and fund $50k at 9% with a 2% commitment fee.
Helping an auto repair lender grow
Collateral Type: Portfolio of private and public companies
Amount: $50M
Term: 1 year
Geography: Canada, USA
Public company had large loan to senior lender mature and needed a very quick turn to replace (needed a commitment in 2-3 days).
Holding corporation with interests in over 20 underlying public and private positions; net asset value greater $500 million.
Covenants included pledged public stock always to exceed 2x loan amount and net asset value to always exceed at least 4x loan amount.
Springing control account put in place at brokerage firm, allowing us to liquidate public shares if covenants breached.
Amortizing term loan (2 months interest only, 10% of loan value to be repaid each month thereafter – with a bullet payment at maturity).