RECENTLY FUNDED | $750K Commercial/Industrial Loan Secured by Private Aircraft | CT
LOAN CASE STUDY: A high net worth investor from Connecticut in aircraft leasing refinances his private jet with the help of Speritas Capital.
THE SITUATION: A Connecticut investor and owner of a private aircraft wanted to refinance an existing loan secured by a private jet.
His main relationship bank had no experience with loans secured by aircraft so the bank lending officer referred her client to Speritas Capital Partners.
Financing Obstacles
The Challenge
The deal was complicated by the type of collateral (a Cessna Citation Bravo), the number of parties involved and the source of the loan repayment.
A leasing structure would not work because the underlying lease payments would not be sufficient to cover the loan P&I payments.
Traditional leasing companies and non-traditional lenders were quoting low to mid teens for the rate.
In addition, the borrower’s relationship banker wanted to help their client but also protect the client relationship.
Speritas Capital’s Role - Funding Solutions
The approach:
Find a traditional lender with an appetite for a cash flow loan secured by a business jet and lease payments.
Negotiate loan terms that would match the remaining engine hours and the underlying lease.
Speritas Capital was able to identify a traditional lender from our 100+ lender network – but only after a lot of digging.
Once the right lender was found, Speritas Capital worked with the lender and the borrower to overcome unusual underwriting issues, such as matching the loan maturity and extension options to the jet lessee’s payments and to the remaining engine hours.
An important part of this process was trusting that existing relationships would be respected by all parties.
Speritas Capital is fortunate to work with some great financial partners that seek synergies and look out for the best interests of the borrowers.
After a nationwide search to find the best terms, Speritas Capital was able to identify a traditional regional lender with an established aircraft credit policy – unusual for traditional lenders.
The combination of the borrower’s net worth, the aircraft lessee’s track record and the aircraft’s condition all factored into a positive underwriting decision.
This commercial and industrial loan was an all around win for the borrower, the relationship bank, and the new lender.
The relationship bank was able to add value by referring their client to Speritas Capital rather than just saying “no” and the new lender has a strong credit client.
This financing was a great example of how Speritas Capital works with their traditional bank lending partners to strengthen bank clients by providing them with access to additional credit.
Questions about asset secured lending? Call or text 203-247-4358, send an email, or schedule a call now with Speritas Capital CEO, Jeff Bardos.
About this Commercial & Industrial Loan
Loan Type: Commercial and Industrial Loan – secured by aircraft and underlying lease
Lender Type: Traditional lender with an established aircraft credit policy
Loan Amount: $750K
Term: 3 years / fixed rate
Closed in: 90 days
“Jeff, I really appreciate your effort! This wouldn’t have happened without your personal relationship with the commercial banker and the bank president.”
Conclusion – Post Finance Update
The borrower was able to refinance the private jet loan, extend the lease, and achieve a positive cash flow due to the competitive rate that Speritas Capital found.
This CT investor is now well positioned for the next three years.
Are you trying to leverage non-standard collateral?
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The Speritas Capital team is always happy to hear your story, learn more about your financing needs and answer your questions. We bring our 30+ years of banking experience and our transparent, strategic approach to every client and every deal, both large and small.
And we never take up front fees.
CONTACT INFO
Jeffrey Bardos
CEO Speritas Capital Partners
Call/text Jeff at 203-247-4358
Email Jeff with your ABL financing questions
Schedule a call with Jeff using our online scheduling tool.
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