Private Property Company
We assisted a private property company with the disposal of a portfolio of properties that were originally charged to IRBC. A fall in the market together with a failure by IBRC to consent to a key re-letting, led to the values being substantially below the outstanding loan amount.
The liquidation of IBRC led to a sale of the loan to a new lender. We led the negotiations with the new lender on behalf of our client, which led to an agreement to sell the portfolio. We managed an exit for our client and a total recovery to the new lender of nearly 30% more than originally anticipated.
We were mandated by an existing client to raise bridging finance of up to £20 m. The loan was partly to refinance existing indebtedness and partly for general working capital. The time scales were tight with important contractual payments needing to be made within two months. With insufficient cash flow to meet interest payments any funding needed to provide for interest to roll-up until maturity.
Having approached a small number of potential lenders, we swiftly selected a preferred partner and worked closely with them to finalise loan terms. We provided the interface between the client and its lawyers as well as providing commercial advice on loan terms. We were able to negotiate a deferred drawing of part of the loan significantly reducing the interest cost.
The loan for an overall term of 20 months was completed and drawn last week, ahead of the client's deadline.
We added significant value to the transaction by reducing interest costs, securing a loan facility that was substantially better for our client than anticipated by its lawyers and by negotiating to reduce other professional costs.