The Deal
- Construction facility of up to US$42.25MM.
- Senior secured demand loan facility with monthly interest payments and full principal due at maturity.
Loan Details
- 54-unit residential development.
- Monthly interest payments; full repayment upon project completion or upon demand.
- Construction period capped at 30 months, with phased drawdowns approved by a Project Monitor.
Security
- First legal charge over the development site.
- Fixed and floating debenture over borrower assets.
- Full fire and all-perils insurance.
- Personal and corporate guarantees from shareholders and affiliated entities.
Background: Tailwind Ltd. was approached by a local developer seeking to transform a prime parcel in Grand Cayman into a 54-unit residential community. The developer had a proven track record and substantial presales in place. Tailwind coordinated with financial institutions to provide the necessary senior debt to bring the vision to life.
The Borrower: The shareholders behind the project are high-net-worth individuals with a strong history of responsible borrowing and professional integrity. Tailwind’s team had an established relationship with the shareholders, providing additional confidence in the borrower’s capabilities and commitment. The character and transparency of the individuals involved, combined with the strength of the security package, were key factors in Tailwind’s decision to support the project.
The Deal & Funding: Tailwind Ltd. successfully arranged a US$42.25MM senior secured construction loan syndicated between two major lending institutions. The loan facility was structured with monthly interest payments and full principal repayment upon project completion. The facility was fully secured by real property and supported by guarantees from the corporate owner and its principals. Drawdowns are supported by Tailwind and approved by an independent Project Monitor, ensuring responsible disbursement aligned with the construction budget.
The Conclusion: Construction is actively underway, with multiple drawdowns already disbursed in accordance with lender and monitor approvals. Presales have continued to perform, and the Borrower has remained current on all obligations. The facility exemplifies Tailwind’s ability to navigate complex construction financing while delivering security and returns to lenders.
