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Premium Liquidity
Our Premium Liquidity solution offers the most aggressive terms for funding against investment grade financial instruments. We will consider any instrument issued by an appropriately rated U.S. or International financial institution.
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Leveraged Liquidity
We offer the solution to the difficulty of raising capital to comply with contract obligations. Collectively, the parties of a purchase transaction have the opportunity of creating a contract with investment grade value.
Such an instrument offers both parties the opportunity to structure the financial terms of the transaction with unparalleled flexibility.
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Premium Liquidity
• All types of investment grade financial instruments considered.
• As low as $10MM minimum face value depending on instruments.
• Up to 93% LTV.
• Rates as low as 3.5%, depending on instrument.
• Interest is paid in arrears from monthly to annually depending on the product selected.
• Due diligence fees as low as $1,500, though ultimate fees will be commensurate with the complexity of the transaction.
• No other out-of-pocket costs.
• U.S. Dollars & Euros (alternative currencies can be considered).
• 2 points (average). points deducted from funding.
• Banking consortium fees are taken from the remaining value of the instrument.
• The financial institution issuing the instrument must be A-rated or better (S&P or Moody's). Ratings as low as BBB are accepted on an exception basis with a lower LTV.
• Minimum 1 year remaining on term of instrument.
• The loan term is equal to the remaining term of the instrument.
• Funding terms may be extended if instrument has an appropriate evergreen clause.
• Funding in 10-20 days.
• No project identification is necessary.
• No underwriting requirements - only due diligence & information verification.
• Funds may be dispersed in traunches depending on the type of instrument, the face value of the instrument and the needs of the client (traunching schedules are not always required).
• No prepayment penalties.
• Privacy & Discretion.
Leveraged Liquidity
Buyer (Off Taker)
• The buyer of the product (or services) can defer payment for the product until the product has been resold or utilized and the buyer's profit has been recognized (payment can be deferred up to several years). This preserves valuable capital for the buyer that can be redirected towards the purchase of other products or used in other valuable revenue generating activities.
• Depending on how the parties of the transaction structure the cost of funds, the buyer can actually pay for the product after they have recognized their own profit from the transaction with zero cost of funds for product acquisition.
• The buyer can fix the cost of the product, thus creating a predictable budget and cash flow.
Seller (Developer)
• The seller can obtain the advance funding required to build infrastructure, hire work force, purchase material and more with zero out-of-pocket cost (the only cost for this opportunity is the cost of funds - there are no fees).
• This solution is a non-recourse opportunity for the seller.
• Seller's time in business, financial and credit history are not a focus.
• Seller can receive an advance of 100% (or any portion of) of the value of the contract, less the cost of funds. This provides the seller the opportunity to utilize the projected profits of the transaction now rather than later (the time value of money).
Terms & Additional Benefits
• The Off Taker must be BBB rated or better (S&P or Moody's). If no rating is available, the Off Taker may present financials for consideration.
• Minimum funding request is $10MM (no maximum).
• Average cost of funds is 7.5-9.5% fixed, compounded semi-annually.
• Contract must be in U.S. Dollars and fall under U.S. law jurisdiction.
• Due Diligence fees as low as $1,500, though ultimate fee will be commensurate with the complexity of the transaction.
• Project must be viable.
• Payment contract must be unconditional (parties may have seperate performance contract).
• Contract must be sum-certain and date-certain.
• Contract should be assignable (depending on structure).
• Term of repayment will match term of contract.
• Funding in 10-20 days after construction of an acceptable contract.
• No management of funds.
• No prepayment penalties.
• No fees.
• Not asset based.
• No equity given away.
• Ease of close.
• No surprises.
The Leveraged Liquidity solution allows for other types of domestic investment grade collateral with measurable value. Please contact us for consideration of other types of financial instruments (other types of financial instruments include, but are not limited to: letters of credit, CDs, mutual funds, bonds, retirement packages, annuities, tax credits, lottery winnings, guaranteed settlements, and more). All instruments must be unconditional.
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