The Deal
- Bridge loan of US$1.15MM.
- Senior secured promissory note with a fixed 12% annual interest rate.
Loan Details
- Loan-to-value ratio: 50%.
- Bullet payment at term end; early payment allowed after 6 months.
Security
- First position mortgage on residential land worth $2.3MM.
- Fire/general/all perils insurance on the property.
- Guarantee from corporate owner of the residential land.
Background: Tailwind Ltd. was introduced to entrepreneur by a trusted mutual contact. Their dynamic business immediately caught our attention, and after conducting a thorough review of his financial position and meeting with them in person, we were impressed by their passion, drive, and vision. By leveraging our network of investors, we have been excited to work alongside this visionary entrepreneur.
The Borrower: The Borrower sought to purchase a residential property and turned to Tailwind Ltd. for assistance in securing a bridge loan of US$1.15MM. The cash flow of their company was and still remains strong. Tailwind was happy to provide them with the flexible financing solutions they needed.
The Deal & Funding: Tailwind Ltd. offered a compelling investment opportunity to its investor network for a US$1.15MM loan carrying a fixed annual interest rate of 12%. The loan was secured by a first position mortgage on residential land in the Caribbean, with a combined appraised value of approximately US$2.3MM. The loan-to-value ratio was around 50%. Principal was due to be repaid at the end of the 12 month term by way of a single bullet payment, although early repayment was allowed with a minimum of 6 months interest on the principal.
The Conclusion: A group of four investors collectively invested US$1.15 million in the loan. The loan was subsequently extended for another 12 months, and the Borrower has been prompt in paying the agreed interest throughout the duration of the loan.
