elliotn
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Post by elliotn on Apr 6, 2017 2:22:47 GMT
Security: - First Charge over Corporate Jet (1987); - First ranking Debenture over the assets of the Borrower; - Security over receivables and cash; - Joint shareholders personal guarantee or pre-purchase order for a minimum of $300,000; - Assignment of insurance
Purchase price £331,000.00
Loan size £331,000.00
LTV - 75%
10.000% Quarterly (3 months minimum) - Interest only - Instant Returns
12 months
Purpose of loan: To purchase a business jet for the purpose of breaking the aircraft for parts.
Borrower: A*** Av****** Ltd, an investment management and advisory firm focused on aviation that has overseen more than 20 investment vehicles totaling more than USD1 billion.
AAL will contract T** A******* Ltd to disassemble the aircraft and manage the project through from funding the purchase to selling the aircraft parts.
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elliotn
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Post by elliotn on Apr 6, 2017 3:38:32 GMT
Hi ablrate , thank you again for an offering that doesn't mean looking at property prices on the outskirts of Liverpool May I confirm if my preliminary overview is correct please: LTV: Loan 331k GBP @ 1.24844 = $400k aircraft + £10k lender agent admin fee LTPV 100% Loan to Income c65% / 62% / 57% (worst to best case) Summary: - lenders need to compare cost of loan to future, realisable income - net earnings risk lies with borrower and affects us only for viability against project abandonment (ie break even at worst, c30% ROI at best) - sales go directly to abl with engines pre-sold (c20 % loan cost) and in total parts for 70% loan cost have pre-identified buyers - parts expected to sell within 3 months (early redemption expected if parts sell successfully, 3m interest min) Questions: - Is the above summary reasonable - to over-simply, the risk is up to 12 months to sell $120-125k parts to cover the remainder of our loan (assuming pre-identified part buyers hold up); - What does the 75% LTV compare to; - If the engines are pre-sold (Risk Matrix #1) why are they not flat rate under Income (Borrowing Proposal); - Does T** insurance cover parts lost where signs of theft cannot be proven; - What am I missing? Many thanks.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 6, 2017 9:30:56 GMT
My initial reaction to this offering was "Oh Goody, not a Property Loan, I've invested in this disassembling stuff once before and will do so again."
So I started a little bit of DD, and the more I did the more my tiny brain hurt, so I'll pass on this one, at 10%, and not amortizing.
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Post by ablrate on Apr 6, 2017 9:36:39 GMT
My initial reaction to this offering was "Oh Goody, not a Property Loan, I've invested in this disassembling stuff once before and will do so again."
So I started a little bit of DD, and the more I did the more my tiny brain hurt, so I'll pass on this one, at 10%, and not amortizing. No problem Ozboy... aircraft not for everyone... but why would you want it to amortise over 12 months, if it did the yield would be less? If the asset is covered (i.e the asset is there, secured and the receivables are also controlled by the security agent - i.e us), then i/o is the best option, hence why we asked for it to be structured that way.. Anyway, no worries, - more coming soon for your delictation Regards Ablrate
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 6, 2017 9:41:35 GMT
Definitely not having a pop at ABL, sorry if it appeared that way. Good Luck to all concerned, just not for me this one, this time round
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Post by ablrate on Apr 6, 2017 10:31:57 GMT
Hi ablrate , thank you again for an offering that doesn't mean looking at property prices on the outskirts of Liverpool May I confirm if my preliminary overview is correct please: LTV: Loan 331k GBP @ 1.24844 = $400k aircraft + £10k lender agent admin fee LTPV 100% Loan to Income c65% / 62% / 57% (worst to best case) Summary: - lenders need to compare cost of loan to future, realisable income - net earnings risk lies with borrower and affects us only for viability against project abandonment (ie break even at worst, c30% ROI at best) - sales go directly to abl with engines pre-sold (c20 % loan cost) and in total parts for 70% loan cost have pre-identified buyers - parts expected to sell within 3 months (early redemption expected if parts sell successfully, 3m interest min) Questions: - Is the above summary reasonable - to over-simply, the risk is up to 12 months to sell $120-125k parts to cover the remainder of our loan (assuming pre-identified part buyers hold up); - What does the 75% LTV compare to; - If the engines are pre-sold (Risk Matrix #1) why are they not flat rate under Income (Borrowing Proposal); - Does T** insurance cover parts lost where signs of theft cannot be proven; - What am I missing? Many thanks. Yes, your above summary is correct: just some points: The engines are not confirmed pre-sold, hence the personal guarantees place until they and parts up to $300,000 are. 75% LTV is compared to the cost plus the cost of engineering paid for by the borrower .. hmm the insurance is pretty comprehensive, but I will ask on that specific point. I would think it pretty easy to prove theft as the aircraft is complete... and we are dealing with one of the world's leading aircraft engineering businesses. I wouldn't say you were missing anything, the only thing is further risk. If a lot of Falcon 50 parts were dumped on the market, that could effect prices etc. hence beginning to sell them as quickly as possible, from the analysis we have seen this is unlikely in the next 12 months. This one is a little unusual to others, in that the parts will be sold off within the 12 months and no parts kept in storage. However, with another company we will be working with they will store parts for sale later that may not immediately be sold and therefore have a higher yield. So this deal is priced accordingly.
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Post by ablrate on Apr 6, 2017 10:32:52 GMT
Definitely not having a pop at ABL, sorry if it appeared that way. Good Luck to all concerned, just not for me this one, this time round Not at all ozboy... Regards Ablrate
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elliotn
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Post by elliotn on Apr 10, 2017 5:29:55 GMT
We were advised to have cleared funds ready as this was expected to fly out the door but with approaching 20% left and 2 days remaining can we assume there may be some underwriters on standby in the wings to help this take off if required?
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Post by ablrate on Apr 10, 2017 11:35:00 GMT
We were advised to have cleared funds ready as this was expected to fly out the door but with approaching 20% left and 2 days remaining can we assume there may be some underwriters on standby in the wings to help this take off if required? Hi I expect it has been the rate/short timing etc... There won't a problem filling it, so take of will be imminent.. well er.. no take off... you know what I mean. Regards David
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blender
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Post by blender on Apr 10, 2017 11:50:39 GMT
We were advised to have cleared funds ready as this was expected to fly out the door but with approaching 20% left and 2 days remaining can we assume there may be some underwriters on standby in the wings to help this take off if required? Hi I expect it has been the rate/short timing etc... There won't a problem filling it, so take of will be imminent.. well er.. no take off... you know what I mean. Regards David The rate is the thing. We have been spoilt by such as 532, where 13% was offered on a plane in a hanger, not being disassembled, low LTV, monthly interest. That was priced high presumably to attract £1.8M. For £300k you don't need to try so hard. But for me, a spoilt greedy b*st*rd, 10% relates to bricks and mortar type security at a decent LTV. Yes I am sure it will fill ok, in time.
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Post by superfluid on Apr 10, 2017 13:11:43 GMT
I have put in for some of this loan but one thing stopping me from allocating more capital is the feeling like it could end up getting called after just 3 months. With no make-whole we are basically just giving optionality to the borrowers. I would prefer to see a prepayment penalty of (at least) 3m extra interest.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Apr 12, 2017 11:44:02 GMT
ablrate said in an email 'In other news, the aircraft loan will be drawn today, we are completing all the paperwork. I will be going over to Geneva to take a look at your new acquisition and will report back.' No need to trouble yourself on our behalf Glamorous life this P2P lending lark, I suppose next week you'll be popping over to the set of the latest Star Wars movie to 'check up' on another loan and after that a quick trip to an industrial estate near Newcastle ... oh Andy's doing that one is he (the hunt for the brick continues)
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Post by ablrate on Apr 12, 2017 11:49:49 GMT
ablrate said in an email 'In other news, the aircraft loan will be drawn today, we are completing all the paperwork. I will be going over to Geneva to take a look at your new acquisition and will report back.' No need to trouble yourself on our behalf Glamorous life this P2P lending lark, I suppose next week you'll be popping over to the set of the latest Star Wars movie to 'check up' on another loan and after that a quick trip to an industrial estate near Newcastle ... oh Andy's doing that one is he (the hunt for the brick continues) ..some one has hacked my diary.... you missed the trip to Australia for the launch of Ablrate Aus though.....
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Post by ablrate on Apr 13, 2017 13:06:20 GMT
Thanks to all who bid. Engineers booked for the work, she is on her way to the great plane park in the... er... sky... ok, that didn't work. Best Ablrate Attachments:
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Post by oldnick on Apr 13, 2017 17:59:35 GMT
Looks like they've already done the job, but I'm no expert.
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