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Finance for Theme Park in Indiana

Monday, August 21, 2017
Borrower   A theme park development company near Indianapolis.
Loan   A ten-year $2 million loan at 15% for the first year, and 24% thereafter.
Collateral   A first lien on 510 acres of land at the intersection of I-70 and State Road 39 (17 miles southwest of Indianapolis).
Guarantors   The loan was personally guaranteed by the principals of the development company.
Purpose   The loan was to enable the developer to take title to the land. The borrower was developing a theme park built around Garfield (the comic strip cat) near Indianapolis at an estimated cost of $110 million. The park planned to offer rides, restaurants, movie theaters, a hotel and a golf course for the projected 1.8 million visitors per year.
Exit strategy   The borrower expected to repay our loan out of the proceeds of construction finance.
Outcome   The loan was re-financed by a pension fund after fifteen months. We have not seen any evidence that the theme park has been built




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