Corporate Loan Notes

A Corporate loan note is perfectly suited to medium to large Property Developers who have a healthy mix of active assets in a well-rounded development pipeline and passive assets which can made to work harder.

A loan note makes the most amount of sense for a Property Development company who is on a growth path and wishes to leverage their track record, balance sheet and committed pipeline or projects.

One of the many advantages of a loan note to Property Developers is that it provides increased certainty with respect to being able to deliver upon its pipeline in a reliable forecast-able manner rather than spending too much time spending with too many individual financier/s on a project by project basis especially in such an illiquid credit environment.

DFP is the only debt capital advisory business that has strong relationships with underwriters of loan notes and a proven track record of successfully advising and settling multiple loan notes.

The Benefits Of A Corporate Loan Note:

  • It is NOT secured by a mortgage over real property
  • It is designed to be used in conjunction with other financiers such as Banks and Non-Bank Senior debt lenders at both an a group and individual project level
  • Few restrictions upon how you use the funds
  • Comes with a pre-approved extendable limit
  • Simple loan covenants
  • Pay interest only upon what you use
  • Ability to recycle the undrawn limit without new establishment fees or new approval processes
  • Flexible loan terms
  • Quick and easy access to your equity when you need it

A key example of a successful Corporate Loan Note that Development Finance Partners have facilitated include:

What our clients say about our Corporate Loan Note services:

“The equity arrangement negotiated by DFP was a breakthrough initiative at a time when traditional lenders have significantly tightened their lending criteria.
The funds injection is of a quantum that clears the way for Steller to progress 14 projects with a completion value of about $800m. The lenders is secured by way of equity in the dedicated 14 project pipeline – in effect, the lender has become a valued partner with us as we develop the business.”

Nicholas Smedley
Managing Director, Smedley Group

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