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Post by bluehorseshoe on May 14, 2018 13:32:06 GMT
I've not invested on ablrate for a while. I noticed there was a new loan today, do these not get discussed much on here any more? Or am I missing something?
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archie
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Post by archie on May 14, 2018 13:38:54 GMT
I've not invested on ablrate for a while. I noticed there was a new loan today, do these not get discussed much on here any more? Or am I missing something? Details available and loan live were both at 2pm so I guess a lot of lenders haven't had a chance to read it yet.
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IFISAcava
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Post by IFISAcava on May 14, 2018 13:48:50 GMT
It seems a fairly classic ABL F*******/C****** loan. I guess the main concern is the number of other loans and making sure one isn't overexposed to this lender since I suspect if one goes they all go. It's amortising and long dated so I've taken a bit.
I do wonder what the rate of return on the borrowed capital is/needs to be to justify (and pay) the 24% pa total interest for these loans.
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ptr120
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Post by ptr120 on May 14, 2018 13:54:37 GMT
I also wonder about total exposure (and of the platform) to this borrower. I also haven't seen convincing explanation of why the borrower is again looking to raise significant capital so soon after their last raise. Was this not foreseen at the time?
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poppyland
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Post by poppyland on May 14, 2018 14:01:46 GMT
I liked the previous C****** loan, and am in on this one too. I like the security, the fact that the loan is amortising, and the fact that the company has been doing well. I've not been so keen on some of the other recent loans.
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jsmill
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Post by jsmill on May 14, 2018 14:13:47 GMT
I am staying away from this one. Already have a small amount allocated to the original loan and for me that is enough for this borrower given the security. I have no knowledge of how of how much of a market for these types of assets actually exists or given their bespoke nature how transferable they actually are. More than that though if you read the valuation to this loan to say that is light on detail is an understatement. It is so caveated and lacks comparison data so find it hard to place any reliance on it whatsoever.
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archie
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Post by archie on May 14, 2018 15:06:02 GMT
It's exceeded the minimum funding requirement
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IFISAcava
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Post by IFISAcava on May 14, 2018 15:14:59 GMT
It's exceeded the minimum funding requirement Not sure I understand what the minimum amount means - are they obliged to draw down the loan if the amount is above?
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archie
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Post by archie on May 14, 2018 15:18:20 GMT
It's exceeded the minimum funding requirement Not sure I understand what the minimum amount means - are they obliged to draw down the loan if the amount is above? I believe so.
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macq
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Post by macq on May 14, 2018 15:19:15 GMT
While it may be on page 14 of the doc's in the risk & disclosures section still think the other loans should be mentioned on the main loan info page under other loans not just 96 the last loan(even as a side note would be ok) as its not like they are not relevant
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indy
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Post by indy on May 14, 2018 15:25:17 GMT
The Borrowing Proposal states: The cabins were acquired for £790k and following estimated refurbishment works of an estimated £770k, they are expected to be valued at £1.5m. But they are costing the company £1.56m....am I missing something.
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registerme
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Post by registerme on May 14, 2018 15:25:46 GMT
It's an Eddie Stobart business model. Effectively they buy on HP, claim the tax back on the interest, and end up with a residual asset worth more than they paid for it and that they can continue to get x years of life out of before another refurb. I guess the main question is whether or not they can get that many units a) refurbed in the first place and b) out earning on customer sites. EDIT: Because of the post timing the above looks like a response to indy, it wasn't, it was just a general observation about the loan
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huxs
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Post by huxs on May 14, 2018 15:27:59 GMT
The Borrowing Proposal states: The cabins were acquired for £790k and following estimated refurbishment works of an estimated £770k, they are expected to be valued at £1.5m. But they are costing the company £1.55m....am I missing something. Yes its £1.56m not £1.55m and that's without the interest costs of the loan. Not the sort of money spinner I would advise
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archie
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Post by archie on May 14, 2018 15:29:48 GMT
It's an Eddie Stobart business model. Will each cabin have a lender's name plate on it?
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andy1
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Post by andy1 on May 14, 2018 15:46:32 GMT
The Borrowing Proposal states: The cabins were acquired for £790k and following estimated refurbishment works of an estimated £770k, they are expected to be valued at £1.5m. But they are costing the company £1.55m....am I missing something. Yes its £1.56m not £1.55m and that's without the interest costs of the loan. Not the sort of money spinner I would advise Obviously spending £1.56m on something that's going to end up worth £1.5m would be dumb if they're looking to sell them on but they're not trying to make money buying and selling units. It's the revenue stream from the refurbished units that's the money spinner.
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