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.”
Managing Director, Smedley Group