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Bridge Finance for Boat Stores

Monday, August 21, 2017
Borrower   Travis Boats & Motors, Inc.
Loan   A $5,300,000 - three-year loan with interest at 12% for the first year, and 18% for the second and third years.
Collateral   A first mortgage lien on 7 retail stores in the southern states. Each store stoods alone on 3 to 6 acres. The total value of the stores was approximately $11 million.
Guarantors   None.
Purpose   The Borrower had suffered badly after 9/11 and was in breach of its bank covenants. The loan was intended to give them time to raise further finance on better terms.
Exit strategy   The borrower planned to repay us from proceeds of sale and leaseback transactions on these stores.
Outcome   The loan has been paid in full. Approximately 95% was repaid from proceeds of sale and leaseback transactions, while the remainder was paid off as part of a refinancing transaction.




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