Industries: |
Radio, Newsletters, Billboards, Towers. |
Loan Purpose: |
Bridge financing, equipment, recapitalizations, acquisitions. |
Loan Size: |
$100,000 to $2 million. |
Guarantees: |
Required from managers owning a majority of stock. |
Underwriting Guidelines: |
Cashflow (income before interest, depreciation and amortization) sufficient to cover debt service.
Closing Debt/Cashflow of 5.0 times or less.
Loan to value not in excess of 75%. |
Collateral: |
First security interest in all assets including UCC filing on receivables, inventory and equipment, an assignment of material agreements and a pledge of equity. |
Amortization: |
5-15 years with balloon at the end of 5 years. |
Fees: |
Loan fee of 2%, paid at closing and legal fee of 1-2% paid at acceptance of commitment. |
Interest Rate: |
Prime plus 4-6%, depending on loan size and leverage, with an interest rate floor at 12%. |
Discouraged Transactions: |
Radio stick loans, loans to companies without
cashflow, subordinated loans, mezzanine loans. |