nush
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Post by nush on Jun 18, 2016 20:51:30 GMT
does anyone know if this loan is happening, i am new to ablrate so not sure what is going on.
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blender
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Post by blender on Jun 18, 2016 21:37:01 GMT
They are doing the paperwork, but very likely to happen, probably this week coming. You will get the instant returns until draw down, then interest.
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stevio
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Post by stevio on Jun 24, 2016 18:35:25 GMT
ablrate@ablrateandy is this loan ever going to draw down?
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stevio
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Post by stevio on Jul 10, 2016 9:24:23 GMT
If the loan was made for less than expected, but the security remains the same, does this then mean that the LTV is lowered?
For instance, LTV in loan documents originally 34% based on maximum 2.2m loaned and 6.5m equipment Now £780k loaned but secured on same 6.5m equipment, does this then make this 12% LTV?
Also seems to be a 2nd charge on property, which would again lower the LTV (unsure how to work this out though?)
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SteveT
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Post by SteveT on Jul 10, 2016 10:43:15 GMT
It drew down in June. Instant Returns were paid on 27/6/16
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stevio
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Post by stevio on Jul 10, 2016 11:57:55 GMT
It drew down in June. Instant Returns were paid on 27/6/16 Thanks SteveT, this comment was prior to it drawing down and I am aware it has now drawn down (not sure why you replied to a previous comment rather than the newest comment)?
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SteveT
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Post by SteveT on Jul 10, 2016 12:16:17 GMT
Oops, for some reason read them both as new posts
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stevio
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Post by stevio on Jul 10, 2016 12:24:25 GMT
Oops, for some reason read them both as new posts Lol, so any comment on the newer question? or have we just gone round the houses for nothing lol
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KoR_Wraith
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Post by KoR_Wraith on Jul 10, 2016 13:58:54 GMT
If the loan was made for less than expected, but the security remains the same, does this then mean that the LTV is lowered? For instance, LTV in loan documents originally 34% based on maximum 2.2m loaned and 6.5m equipment Now £780k loaned but secured on same 6.5m equipment, does this then make this 12% LTV? Also seems to be a 2nd charge on property, which would again lower the LTV (unsure how to work this out though?) Yes, my understanding is that the 12% LTV would apply plus 2nd charge on the property. Whilst obviously a very low LTV, the valuation states that the £6.5M "assumes that at some point in the future a successful waste to energy power plant can be built on the site which will meet specification and successfully produce power to take advantage of the Government subsidies available". Even generously discounted the £780k loan would seem reasonably secured, but as pointed out by the valuation report, this equipment isn't the easiest to assess and the interest is 14% for a reason. I personally wouldn't look to the 2nd charge on the property to further reduce the LTV calculation; too much uncertainty for my liking.
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stevio
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Post by stevio on Oct 17, 2016 13:08:10 GMT
Another £1.42m plus update on current financials
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jfm
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Post by jfm on Oct 17, 2016 18:48:47 GMT
Details include "12 MW grid connection ... ready by mid 2016" Is that date correct ablrate?
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ptr120
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Post by ptr120 on Oct 18, 2016 9:13:56 GMT
ablrate I'd be interested in your comments on the fact that this new loan tranche would seem to dilute the value of the security in the pervious tranche (I don't recall a mention that there could / would be further drawdowns) - the variable nature of the size of this tranche also makes it difficult to calculate the LTV. I suspect that my own conclusion will be that I'm overexposed to this borrower but I'm happy to be convinced...
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Post by ablrate on Oct 18, 2016 10:14:07 GMT
ablrate I'd be interested in your comments on the fact that this new loan tranche would seem to dilute the value of the security in the pervious tranche (I don't recall a mention that there could / would be further drawdowns) - the variable nature of the size of this tranche also makes it difficult to calculate the LTV. I suspect that my own conclusion will be that I'm overexposed to this borrower but I'm happy to be convinced... Hi ptr120 The original borrowing proposal was for £2.2 mn and lenders loaned £780,000. The borrower has a bridge in place but approached for another tranche. After discussions with the borrower we were comfortable that good progress is being made and that the management are committed to making a success of the plant and have outperformed on projections. There is a dilution of security on the new tranche but even if the full amount of this tranche is raised we feel that the security is there should there be any problems (especially with cross guarantees etc). Of course, you need to look at the risks and balance your portfolio accordingly.
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ptr120
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Post by ptr120 on Oct 18, 2016 11:33:30 GMT
The borrower has a bridge in place but approached for another tranche. After discussions with the borrower we were comfortable that good progress is being made and that the management are committed to making a success of the plant and have outperformed on projections. There is a dilution of security on the new tranche but even if the full amount of this tranche is raised we feel that the security is there should there be any problems (especially with cross guarantees etc). Of course, you need to look at the risks and balance your portfolio accordingly. Thanks ablrate for these comments. Will the borrower be reducing their bridge by whatever sum is raised through this loan listing (and presumably reduce their cost of finance), or will they be increasing their total indebtedness?
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james
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Post by james on Oct 18, 2016 23:10:04 GMT
What is the relationship between this loan and the £2.2 million lent by Access Commercial Finance? Is this loan part of a package to refinance the ACF one?
As jfm mentioned, has the 12MW grid connection work expected to be complete by mid 2016 been completed or is 2016 perhaps a mistake in the loan description at Ablrate and the borrowing proposal document?
Are any Ablrate-related individuals involved in the London fund that provided the initial acquisition financing mentioned on page 8 of the proposal document? How is the current fund raising related to this loan, vs the ACF one, if at all?
The loan description at Ablrate says that the purpose of the loan is to refinance £2.2 million of initial funding used to make the acquisition. The draft loan contract says that the purpose of the loan is working capital. Why the difference? The draft loan terms say 14% interest rate at the top and 12% lower down. I suppose 14% is correct?
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