$3,000,000 refinance
The customer acquired a mothballed wastewater treatment facility, which took on high-cost private financing for the purchase and improvements. Given onerous interest costs and approaching maturity date, the client was looking to refinance, but the company was too young and the asset too nuanced for the Tier 1 lenders.
The customer was introduced to us by its cash management provider (a Tier 1 bank). Unfortunately, the introduction was sent to the wrong email, and it took a month for anyone to realize it.
Once we were alerted, we sprinted, knowing there were select lenders suited for this asset.
Within two days, we secured a term sheet for a TELP facility. Underwriting took a little longer, in part because we had issues getting the existing appraisal provider to update the previously provided appraisal. We had to change appraisers, but the crisis was averted.
Long story short, financing took longer than we all hoped but is now closed. The customer replaced the previously unsupportive lender and is saving over $250,000 in interest costs while getting additional capex capacity to finish building the facility.
We work with our clients to ensure they have the best finance options.
#businessfinance #calgary
