Post by gramsky on Mar 28, 2023 17:05:58 GMT
Received an email today from Relendex as follows:-
"Relendex is launching a new loan segment to provide additional opportunities for Lenders with different approaches to risk and desired returns.
Known as Junior Ranking B, it will be secured by the same 1st charge security as the Senior Ranking and Junior Ranking A tranches. It will be available on loans where Relendex has agreed to offer the initial funding at up to a 75% LTV, including Development Exit loans, where the risk has been mitigated by completion of the development works, or Development loans where there are other acceptable risk mitigating circumstances, for example a very strong borrower covenant.*
The Junior Ranking B tranches will offer a higher interest rate to Lenders that reflect the higher LTV".
It has me completely confused. Anybody understand how a junior loan can have 1st charge security?
"Relendex is launching a new loan segment to provide additional opportunities for Lenders with different approaches to risk and desired returns.
Known as Junior Ranking B, it will be secured by the same 1st charge security as the Senior Ranking and Junior Ranking A tranches. It will be available on loans where Relendex has agreed to offer the initial funding at up to a 75% LTV, including Development Exit loans, where the risk has been mitigated by completion of the development works, or Development loans where there are other acceptable risk mitigating circumstances, for example a very strong borrower covenant.*
The Junior Ranking B tranches will offer a higher interest rate to Lenders that reflect the higher LTV".
It has me completely confused. Anybody understand how a junior loan can have 1st charge security?
