£5m
Loan amount
60%
LTV
Re-financing a portfolio
THE CHALLENGE
Bircroft was appointed to re-finance a portfolio of Cold-Storage Units (operated by Rick Bestwick). The existing finance in place was short–term, and our remit was to secure cheaper term-loan financing to assist cash-flow. The Cold-storage market is specialist in nature, which hugely restricts the availability of funding.
THE SOLUTION
Using our extensive commercial expertise we instigated an education process with target lenders on the Cold-storage market. Following the education process, Bircroft successfully placed £5m of debt, which enabled the borrower to concentrate on the operational side for the next 5 years, whilst reducing their interest rate from 13% to 3.5% p.a.
KEY WINS
- Successful re-education of lenders for this specialist sector
- Substantial reduction of interest rates