The Sponsors have a long history of successful senior management with large businesses in Australia including significant experience with Government Civil Works infrastructure projects, specifically with guard rails supply and installation.
The purpose of this loan is to refinance an existing loan and to provide additional working capital to their business. The Sponsors were recently approved by a local government procurement panel to supply and install road safety guard rails to local government areas in central and northern NSW. Working capital is required to fund operations until contract receipts are received.
The Sponsors can’t get bank finance as the trading entity was only established in May 2021 and new contracts have not yet been achieved to demonstrate serviceability requirements.
Security on offer is a 65.45ha property in Mororo, a quiet village in Clarence Valley, NSW, with rural zoning and has a single level dwelling that consists of three bedrooms, one bathroom and a garage.
The primary exit strategy is to repay the loan using the additional revenue from the new contracts. The secondary exit strategy is to refinance any residual debt to bank finance once revenue and profit can be demonstrated. Sponsors also hold other real estate assets that can be sold to clear debt.
- The loan will be secured by a First Mortgage
- Personal Guarantees from Individual Sponsors
- General Security Agreement over Corporate Sponsor + PPSR Charge