Platform
Bank quickly provided access to a term sheet and commitment letter through the CE portal.
Complex deal structure
Navigating a Complex Media Refinancing Deal
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- Bank
- Texas based community bank
- Borrower
- Media technology company
- Line of credit
- $3,500,000
- Collateral coverage
- $350,000
Situation overview
- Profitable media company with revenues > $30M
- Borrower seeking a new banking relationship to grow with
- Significant debt from a third-party investor that needs to be converted to equity as part of transaction
- Very important to get capital structure correct in order to get new relationship started on the right path
- This refinancing would significantly reduce interest expense
Underwriting concerns
- 01
Uneven financial history
- 02
Limited industry exposure
- 03
New relationship for the bank
New customer relationship in CA. The bank has limited exposure to the industry. The debt conversion at close and post close is seen as complex and a potential risk.
Solution
Collateral
The collateral was priced at close along with quarterly extension fees. No surprises for the bank in terms of cost.
Bank Control
Bank secured the option to put the collateral in place at its discretion during the one-year duration of the loan.
Benefits
The CollateralEdge™ value proposition is designed to align incentives with our bank customer to win a commercial loan.
The high-quality collateral enabled the bank to get comfortable with the underwriting concerns and close the transaction.
The bank was able to deliver a transaction on an expedited timeline as the CE solution fit within the bank’s workflow.
Executing this commercial loan enabled the bank to secure the deposits as well as a large and active new lending relationship.