| Transaction Description: |
$50,000,000 Senior Secured Re-Discount Credit Facility for a Hard Money Lender. GSP arranged a $50,000,000 senior secured revolving credit facility for a hard money real estate lender located on the East Coast. The hard money lender created a new fund capitalized at $17,000,000 which was leveraged with the $50,000,000 credit facility, giving the lender a total capital pool of $67,000,000 to expand their loan activities. The credit line includes a provision for the credit provider to increase its line to a total of $100,000,000 through internal funds and/or syndication. The term of the credit facility is three years.
The hard money lender is very experienced, with excellent contacts in the New York financial community, and plans to grow substantially over the next several years making loans to what they consider to be the high end of hard money borrowers. They charge somewhat lower fees than many of their competitors, so access to reasonably priced capital is key to the execution of their business plan. This hard money lender makes bridge loans on commercial income producing real estate properties in the $1,000,000 to $5,000,000 range, located throughout the United States, where, for some reason, the project cannot be financed by a traditional bank or other conduit source. |
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| Rate: 1 Mo Libor +300 |
| Term: 3 yrs |
| Amort: I/O |
| Prepayment: 2%-1%-0 |
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Recourse: Borrowing entity only
Lender Fee: 1%
Unused Line Fee: 0.25%
Key Players: Nathan Auslander, Gary M. Tenzer
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