Taxable Floating rate notes offer an attractive alternative to conventional bank financing. The notes are very flexible instruments with little or no restrictions on the amount borrowed, repayment period, prepayment, location of project, use of proceeds, etc. The notes can be used to finance any project, regardless of its purpose, including general corporate needs, capital expenditures, acquisition financing, to name a few. It is a cost efficient way to access the capital markets.
Loan Underwriting:
- Up to 100% LTV
- 1.00x DSCR
- Finances any cash flow, not just real estate
- Loan collateralized with irrevocable Letter of Credit (LOC) for loan amount plus 60 days interest
- LOC issued by an "A" or "AA" rated bank for a minimum of 2 years, then annually renewable
- Issuing bank to have first lien on property
- Interest rate based on the credit of the bank issuing the LOC
- $5 to 500 million
- Actual/Actual interest calculation
- Interest rate reset weekly based at a nominal spread over commercial paper or LIBOR
- Open to prepay at par on any interest payment date for full term of notes
- Interest only or amortizing
- Floating rate for loan term with Interest Rate Swaps or Caps available