Borrower
Successful 30-year entrepreneur, specializing in electronic gaming, software, and support services.
Funding
Tailwind arranged a US$3.25MM bridge loan.
Interest Rates and Disbursement
- Initially 10% for 24 months, later increased to 15% per annum.
- Three drawdowns, first within 30 days of closing with a minimum of US$1,000,000, and subsequent drawdowns within 90 days of closing.
Security
- First charge mortgage over two Cayman Island properties.
- Assignment of life insurance.
Background: Tailwind Ltd. built a valuable connection with the borrower through a mutual friend/contact, emphasizing the strength of our network and reputation in the industry. The borrower’s businesses faced significant challenges due to the COVID-19 restrictions and lockdowns, resulting in disruptions to their cash flow. The borrower turned to Tailwind for support, seeking a bridge loan to bolster their working capital.
The Borrower: The borrower is an accomplished entrepreneur with a long-standing and successful background in the entertainment industry. Over the course of three decades, they have managed various enterprises, focusing on electronic gaming products, software solutions, and support services.
The Deal & Funding: The investment opportunity offered by Tailwind Ltd. was for a total of US$3.25MM, with an interest rate of 10% per annum for the first 24 months, which would then increase to 15% per annum thereafter. The loan had a term of 36 months. Tailwind disbursed the loan in three drawdowns: the first drawdown was to occur within 30 days of closing by a USD wire of US$1,000,000 or more, and the second and third drawdowns were to occur within 90 days of closing. Interest accrued for the first 12 months was to be paid monthly for the remaining 24 months, with a bullet payment at the end of the 36-month term. For security, Tailwind Ltd. had a first charge over two properties located on Grand Cayman, and all Perils Strata Insurance was to be placed and maintained on the property. Additionally, the life insurance coverage of the borrower had to be for an amount not less than the loan amount, and the policy was to be assigned to the lender.
Investment Success: The borrower demonstrated financial responsibility by paying interest on time with early principal repayments.
Tailwind Ltd. is proud to have supported the borrower throughout their financial journey and is pleased to have played a role in their success. The successful collaboration with the borrower has solidified their position as a valued client of Tailwind, and the funding provided has proven to be a lucrative investment opportunity.
