The Customer:
$1.25BN revenue S&P B rate subsidiary of a publicly held company
The Complexity:
- 60% soft costs
- Extensive construction
- Related party provided assets
- Assets located at a site not controlled by the lessee
- Financing needed to be provided before environmental study was completed
- No parent guaranty
- Inability to obtain a landlord waiver
- Client needed to maximize cash flow through lowest monthly payment
- Extensive documentation process with multiple parties
The Clarity
- Nexseer took a broad view of the transaction to get comfortable with lessee execution, take or pay contracts, and collateral usage
- 100% financing for collateral and construction
- Ten year term with a 14 year amortization and step payment structure to maximize cash flow
- Nexseer and the client worked through a holiday to complete documentation and fund the transaction by the client’s deadline.