| |
| Borrower | A theme park development company near Indianapolis. | |
| Loan | A ten-year $2 million loan at 15% for the first year, and 24% thereafter. | |
| Collateral | A first lien on 510 acres of land at the intersection of I-70 and State Road 39 (17 miles southwest of Indianapolis). | |
| Guarantors | The loan was personally guaranteed by the principals of the development company. | |
| Purpose | The loan was to enable the developer to take title to the land. The borrower was developing a theme park built around Garfield (the comic strip cat) near Indianapolis at an estimated cost of $110 million. The park planned to offer rides, restaurants, movie theaters, a hotel and a golf course for the projected 1.8 million visitors per year. | |
| Exit strategy | The borrower expected to repay our loan out of the proceeds of construction finance. | |
| Outcome | The loan was re-financed by a pension fund after fifteen months. We have not seen any evidence that the theme park has been built |
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