The Deal
- Multiple bridge loans totalling US$6.85MM.
- Senior secured promissory notes with fixed interest rates ranging from 18% to 20% per annum.
- Structured by Tailwind Ltd. to provide time-sensitive capital ahead of senior bank facility approval.
Loan Details
- Interest-only during the term.
- Bullet repayment at maturity.
- Minimum two-month interest charge; some loans included early prepayment rights without penalty.
- All loans ranked pari passu in senior position, secured against the same real estate asset.
Security
- Personal guarantees from shareholders.
- Corporate guarantees from related companies
Background: In anticipation of a senior construction facility from two major banks, the borrower required immediate capital to maintain project momentum. Tailwind Ltd. structured a series of bridge loans to multiple private lenders, delivering critical short-term funding while the banks completed their lengthy approval process.
The Borrower: The borrower is a local development company undertaking a significant real estate project in Grand Cayman. With development approvals in place and the site secured, the borrower sought flexible bridge financing to fund initial works, consultants, and soft costs pending the bank facility issuance.
The Deal & Funding: Tailwind Ltd. arranged a total of US$6.85MM in bridge financing across four private lenders:
- Lender A – US$3.475MM
- Lender B – US$2.0MM
- Lender C – US$1.0MM
- Lender D – US$375,000
This structured interim solution allowed the borrower to maintain momentum while awaiting senior bank facility approval.
Each tranche shared common terms: fixed high-yield interest, robust security, and coordinated timing to align with the anticipated bank drawdown. The funding enabled progress during a critical window.
The Conclusion: Tailwind’s swift execution of a multi-lender bridge structure helped protect the project from costly delays. All lenders were repaid promptly upon receipt of institutional capital, with interest paid in full. This flexible, interim capital solution is a hallmark of Tailwind’s value-added approach in complex real estate transactions.
