We recently completed this loan for a high-profile borrower. The total solution is divided into two parts:
Part One – A syndicated short-term loan with an equitable charge, supported by a personal guarantee (PG) was put in place quickly to solve the borrower’s urgent financing requirement.
Part Two –A closed bridging loan with a first charge on the residential property, which would clear the existing mortgage and our equitable charge until the property is sold.
We funded Part One using a combination of our private capital and funds from three co-funders, each of whom received an attractive high double-digit return with a guaranteed exit in the short term. The syndicated loan was completed with Tenn Capital being the lender of note (security and facility agent). However, each co-funder received direct interest in the loan and the security.
Each co-funder was provided with:
- Our credit assessment
- Copies of all documentation provided
- The opportunity to inspect the legal documentation
- Time to discuss the loan and rationale with our senior team
The loan was filled within 30 minutes of announcement and was oversubscribed 4 times in the end.
When offering syndicated loans, Tenn Capital operates a “glass box” approach, rather than a “black box”, when partnering with our co-funder network.