• Investor Profile: N/A
  • Investment Plans: Collateral enhance loans: When a project needs collateral to secure financing for the project. Once a project has collateral put in place then a lender comes in to finance the project. All this works together thru this group in London. They put together both banker and collateral providers to finance projects. Collateral enhance loan Key points: 1) no equity participation from lender 2) No Credit scores from borrowers 3) No personal financials from borrowers 4) Interest only payment 5) Payments made in arrears 6) Can ask for up to the first two payment be differed 7) Ten year terms 8) Adjustable rate - 2 to 4 points above 1 year LIBOR 9) Lending is based on two important items 1) Non-disclaimers audit report 2) Collateral in place for loan 10) Any free country 11) Min is 20 Million 12) High income stream projects (casinos, resorts, mines, commercial developments, etc) 13) All loan amount at one time, no allocations 14) All fees Except the third party auditor fees can be protected by surety bond 15) Only 20K retaining fee paid to underwriters for business plan and hand holding thru process 16) 8 week total process (but moves as fast as the borrowers will allow) Calculations: Loan amount X 3.7 X .035 = interest payment X 2.5 = EBITDA needed by first payment Example 100M X 3.7 x .035 = 12,950,000 payment X 2.5 = 32,375,000 EBITDA needed by first payment (this amount is needed for ten years) High income stream projects Total fees thru the process is around 500k 20K for retainer fee (refunded less expense plus it is a retainer so minus less fees when loan closes) 20 to 120k for Auditor fees (not protected by bond. Borrower will negotiate with audit on fees) 28.6k for ECA agreement (2600 is a surety bond) 330k for collateral and banker ( 175K for banker and 125K for collateral provider and 30k for surety bond) Plus the borrowers travel expenses Items needed for submission (via email is better) 1) a short Executive summary on project 2) detail use of funds 3) EBITDA numbers for 5 years or until the income stream gets steady (Earnings Before interest taxes depreciation and amortization) 4) Short resumes on key personnel Thanks Al Santiago Ray Beck KLB Business Consulting Inc Monarch Capital 253 South Main Street, Second Floor Grenada, MS 38901 Telephone(813) 300-3092 Fax (662) 227-9043
  • Minimum Investment: USD 10000
  • Maximum Investment: USD 1000000