$36.2MM financing of Cold Storage Facility loaded with soft costs

The Customer:

$3BN revenue food products subsidiary of a publicly held S&P BBB- rated entity

The Complexity:

  • Custom construction of property fixed to real estate
  • Requirement to manage multiple vendors for construction and installation over an extended period
  • Significant soft collateral including FF&E and substantial tenant improvements
  • In order to monetize the savings, the company required an extended term to large residual
  • Company was acquired mid-transaction and no parent guarantee was available
  • Financing was for a new distribution operation meant to bring previously outsourced services in house.
  • Due to the complexity, duration, and collateral mix in the projects, banks and other institutions were not interested in providing the financing. This left the company to consider using operating cash or issuing a bond.

The Clarity

  • 100% financing for collateral and installation
  • 16 months of progress fundings from $70K to $3.5MM per funding
  • 84 month term to a large residual
  • Structure resulted a lower monthly payment so the client could realize the cash savings
  • Managed documentation in light of change in control
  • Financing for soft costs, installation and tenant improvements
  • Nexseer was able to step up and provide 100% financing for the project.