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$12.5 Million Bridge Loan Settles Protracted Litigation With Lender

The London Manhattan Company is pleased to announce it recently arranged a $12.5 Million Bridge Loan for an equipment rental firm located in the Eastern US. This bridge financing included an equipment facility of $9.5 million and an accounts receivable facility of $3 million, and enabled the client to pay off its existing lenders. The client and the primary secured lender had been in protracted litigation, and hearings and motions continued unabated right up to the closing date for the new bridge loan.

The Situation:

This client was a 20 year-old earth moving equipment dealership and rental company, providing heavy industrial assets to the construction, scrap and demolition industries. It had a long history of successful operations with annual revenues running over $40 million. The client had previously engaged two other investment banking firms before LMC without result, and had paid substantial fees to them. The client then engaged LMC without payment of advance fees, which is our practice. LMC will also arrange permanent financing to take out the bridge at the end of its one year term.

The Bridge Loan Structure:

LMC arranged new bridge financing with the following attributes:

Total Bridge Loan Facility: $12.5 Million
Equipment Bridge Facility: $9.5 Million
Accounts Receivable Based Bridge Facility: $3 Million
Equipment Collateral: Client Equipment in Various Locations
A/R Collateral: Accounts Receivable Deemed Eligible by the Lender and Certain Inventory
Loan Term: One Year
Equipment Loan To Value: Percentage of Liquidation Value of Equipment Financed
Security Interests: 1st Position Lien on Collateral Financed
Monthly Payments: Principal and Interest Payments on Equipment Facility; Interest Only on A/R Facility
Prepayment Penalty: Yes; Three Months Minimum Interest Obligation on Equipment Facility
Personal Guarantees: Yes
Debt Service Coverage: Not Required

Many Other Special Programs Available

We have many niche lending programs available, including those suitable for companies with less than perfect credit. If you have had difficulty getting the financing you need, please give us a call.

For more information, or if you have an opportunity you would like to discuss, please contact Ron Giguere at 888.859.6025