I've just been over to take another look and here's what's on offer security wise:
Tranches 1 & 2:
a) 1st Charge over the £x.x million assets contained within the plant/site.
b) 2nd Charge over £x.x million property with £x million equity.
Tranche 3 (Current loan proposal):
a) 1st ranking Corporate guarantee over company.
b) 2nd Charge over property (as above for Tranches 1 & 2?).
c) Personal Guarantee from majority Shareholder (our Borrower).
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*Tranches 1 & 2 encompass physical assets ie all Plant and Equipment which enable the whole processing operation to function these are the core assets.
*Tranche 3 doesn't offer these.
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Personally if push comes to shove I would wish to have my security wrapped up in the Core Plant & Equipment because these are eminently marketable to operators within this specialist sphere of operations; we may all have differing opinions on the intrinsic value of the security being presented us, that's as it should be, ultimately it's an individual choice as to what we'd prefer.
This is a relatively new World class purpose built facility and one that should witness a growing demand for its services as Central Government implement tighter and tighter controls/increase taxation.
Our Borrower is seeking to diversify the range of activities the site can offer as a means to broadening then enhancing the income stream which is why I'd like to know how our monies for Tranches 1 & 2 have been spent and what the plans are for the Tranche 3 funds; what additional value will our £contributions make to the overall profitability of the Business/Facility?
How does our Borrower intend to attain his goals?
How many Tranches can be expected and (for onsite Ablrate) what £amount of cumulative borrowings?
Ping
ablrate for definitive comment please.
