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DM International
2829 Meadow Hill Dr N
Clearwater, FL 33761
Phone: 727.797.3188
Fax: 727.797.4227
Email:
info@workoutloans.com |
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| $3.5
Million Refinancing Loan for a Kansas College Building. |
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| $2.6 Million Refinancing
Loan for a New York Strip Mall. |
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| $2.6 Million Purchase
Loan for a California Brew Pub. |
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| $1.5
Million Purchase Loan for an Arkansas Hotel. |
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| $600 Thousand Purchase
Loan for a Florida Restaurant. |
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| $7.8
Million Texas Land Development Loan. |
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| Products used to finance business
transactions. |
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Junior subordinated loans are subordinated in their
rights to receive principal and interest payments from
the borrower to the rights of the holders of senior debt
and senior subordinated debt.
The risk profile of junior subordinated debt is high,
which permits the junior subordinated lender to obtain
higher interest rates and warrants to purchase a greater
portion of the borrower’s stock.
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Loan size:
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$3MM to $15MM |
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Advance:
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Dependent on Cash Flow |
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Structure:
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5+ Year Term, Flexible
Amortization |
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Equity Participation:
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Typically required |
Using the assets and cash flow of the underlying
business as collateral, a business typically uses senior
debt to cover a substantial portion of the funding
needed to operate.
Senior loans are exposed to the least risk of debt
because they command a senior position with respect to
scheduled interest, principal payments and collateral.
However, unlike senior subordinated and junior
subordinated loans, these senior loans typically do not
entitle the lender to obtain any stock or warrants to
purchase stock of the borrowers. As such, senior loans
generally do not participate in the equity appreciation
of the value of the business.
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Loan Size:
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$1MM to $5MM |
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Advance:
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Dependent on Cash Flow and
Assets |
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Structure:
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5+ Year Term, Flexible
Amortization |
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Collateral:
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First Lien on Assets |
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Equity Participation:
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None |
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Senior subordinated loans or last-out-tranche
loans are typically subordinated in their rights
to receive principal and interest payments from
the borrower to the rights of the holders of
senior debt. As a result, senior subordinated debt
is riskier than senior debt.
Although such loans are sometimes secured by
significant collateral, many of these loans
principally rely on the borrower’s cash flow for
repayment. Additionally, lenders receive warrants
or other yield enhancements to acquire shares of
stock in borrowers in connection with these loans.
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Loan size:
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$3MM to
$15MM |
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Advance:
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Dependent on Cash Flow
and Assets |
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Collateral:
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Second Lien on Assets |
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Equity Participation:
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Dependent on situation
but usually none |
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