Monetus
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Post by Monetus on May 12, 2016 13:56:06 GMT
Just got an email regarding the new loan shortly going live....
Hi All
Apologies for the short notice, but we have been able to bring forward a loan to go live today. There is plenty of capacity so it should be on the system for a decent period for you to do your due diligence. The loan is going live today for GRL who purchased XXX in Gateshead.
The loan is for a minimum of £250,000 and a maximum of £2.2 million, interest only. Interest is 14% p.a, term is 30 months and the loan is secured against a first charge on £6.5 million insitu valuation of capital equipment along with a second charge on a property and land of the XXX with a valuation of £7.5 million with £3 million in equity.
GRL is an operating company for the XXX and is owned by AF an existing customer who is personally guaranteeing the loan and providing cross-guarantees from two of his companies. Full details can be viewed on the site when it goes live shortly.
Regards
David
David Bradley-Ward - CEO
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stevio
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Post by stevio on May 12, 2016 14:05:56 GMT
ablrate ablrateandy are you able to explain this in simple terms please? What exactly is the security?
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Post by ablrate on May 12, 2016 14:08:54 GMT
ablrate ablrateandy are you able to explain this in simple terms please? What exactly is the security? Hi Stevio The details are in the docs, but in simple terms. 1. First charge on £6.5 million equipment (valuation and report in the download docs) 2. Second charge on £7.5 million property and land with £3 million equity (valuation and report in the download docs) 3. Cross guarantees and personal guarantee Hope that helps! Regards Ablrate
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registerme
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Post by registerme on May 12, 2016 14:19:48 GMT
Not looked at the docs yet, but 14% with that kind of security seems... generous. What am I missing?
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stevio
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Post by stevio on May 12, 2016 14:26:09 GMT
Is this Instant returns, it doesn't mention?
If not, you might get people waiting till its closer to filling, which is a pain for everyone
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Investor
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Post by Investor on May 12, 2016 14:27:12 GMT
Is this Instant returns, it doesn't mention? Yes it is and yes it does D***** E****** Refinance 14% p.a, Instant Returns enable secured against a first charge
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Monetus
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Post by Monetus on May 12, 2016 14:27:22 GMT
Is this Instant returns, it doesn't mention? Yes it is. The description on the website says so...
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stevio
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Post by stevio on May 12, 2016 14:29:13 GMT
Is this Instant returns, it doesn't mention? Yes it is and yes it does D***** E****** Refinance 14% p.a, Instant Returns enable secured against a first charge Wood....trees.....lol!
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SteveT
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Post by SteveT on May 12, 2016 14:30:04 GMT
Not looked at the docs yet, but 14% with that kind of security seems... generous. What am I missing? The waste recycling plant has a very chequered history, it seems. Built at massive cost (£50m?!) using new technologies, it basically didn't work. Massive write-offs followed and eventually a fire-sale of the land, building and mothballed machinery for £8m to our serial entrepreneur borrower, who is resurrecting the project under a modified, lower cost operating model. If he succeeds, it should make good money. If he doesn't ...
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j
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Penguins are very misunderstood!
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Post by j on May 12, 2016 14:35:16 GMT
Yes it is and yes it does D***** E****** Refinance 14% p.a, Instant Returns enable secured against a first charge Wood....trees.....lol! Just read outline figures so take this with a pinch of salt as detailed docs may/will shed more light but, with only £3m clear equity, if one ends up lending £2.2m, ltv will be 73% (assuming the other £4.5m of £7.5m valuation is a bank loan) & assuming one will get a full £7.5m on any sale. 14% is an accurate reflection of risk involved in this one, imho. Having said that, will have an in depth look @ docs & figures & may well invest!
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Investor
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Post by Investor on May 12, 2016 14:35:54 GMT
Not looked at the docs yet, but 14% with that kind of security seems... generous. What am I missing? The waste recycling plant has a very chequered history, it seems. Built at massive cost (£50m?!) using new technologies, it basically didn't work. Massive write-offs followed and eventually a fire-sale of the land, building and mothballed machinery for £8m to our serial entrepreneur borrower, who is resurrecting the project under a modified, lower cost operating model. If he succeeds, it should make good money. If he doesn't ... If it's good enough for Lehman Brothers, it's good enough for me 
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registerme
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Post by registerme on May 12, 2016 14:39:40 GMT
If it's good enough for Lehman Brothers, it's good enough for me heh, and we all know what happened to them!
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SteveT
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Post by SteveT on May 12, 2016 14:41:19 GMT
I wonder who is providing the £4.5m 1st-charge bridging loan on the land (ahead of our 2nd charge). Can't help feeling that I'd rather be in that loan, even at a couple of % lower rate... The valuation report for the mothballed equipment more or less suggests "this equipment is very hard indeed to value".
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registerme
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Post by registerme on May 12, 2016 14:44:21 GMT
And if we assume that the equipment is worth nothing, what does that do to the ltv?
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SteveT
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Post by SteveT on May 12, 2016 14:50:25 GMT
And if we assume that the equipment is worth nothing, what does that do to the ltv? That depends whether the land valuation of £7.5m is realistic, leaving £3m headroom over the 1st-charge bridge of £4.5m. Combined LTV on the land alone would be close to 90%, but there are cross-company guarantees and a PG too. Do you feel lucky?
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