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| Friday, July 30, 2010 |
| Borrower | A developer of master-planned communities, primarily in Florida. | |
| Loan | A $7,000,000 nine-month loan at 24%. | |
| Collateral | A second lien on a 632-acre master-planned community with 1641 lots. The development features several recreation centers (including tennis courts and pools), a golf course developed by IRI Golf Management and parks linked by an extensive greenway system of trails and paths. In addition, 10 acres of the property were set aside for a school. | |
| Guarantors | None - the borrower's other loan covenants forbade it to issue any further guarantees, and in our view the collateral was sufficient. | |
| Purpose | The borrower needed cash in a hurry to meet payments on its senior loans. The shortage was caused by their failure to close a sale at the time they had planned. | |
| Exit strategy | The borrower expected to repay the loan out of the proceeds of the sale of the project. | |
| Outcome | The loan was repaid in full. |
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