| |
| Friday, July 30, 2010 |
| Borrower | A landfill operator in Milton Grove, Pennsylvania. | |
| Loan | A one-year $8 million loan at 15%. | |
| Collateral | The loan was collateralized by an assignment of a land lease and a first mortgage lien on the underlying 127 acres of land in Milton Grove, Pennsylvania which includes a 78-acre landfill, plus liens on improvements to the site (buildings, fence, tanks), machinery on the site and a 9.9-acre out-parcel. | |
| Guarantors | The loan was guaranteed by the principals of the landfill operator, and another waste management company in which the principals had an interest. | |
| Purpose | The loan enabled the borrower to buy the landfill from its previous owners. The borrower planned to take the ready-to-go, nearly empty landfill (i.e., at the beginning of its useful life) which was permitted for 3.1 million cubic yards of waste and get a minimum of $10-20 per yard for filling it | |
| Exit strategy | The borrower planned to repay the loan out of the proceeds of a Municipal Bond offering. | |
| Outcome | The loan (after a period of default) was repaid in full out of the proceeds of a re-financing. The borrower later went bankrupt, and the subsequent lender was not repaid in full, and the guarantors suffered substantial losses. |
© Pubsy.com - all rights reserved
Textures courtesy of the Absolute Background Texture Archive