Approach
Underwrite the asset. Document the control. Fund with intent
Our process is designed to reach a clear yes or no without wasting a borrower’s time. We would rather decline early than issue a decorative term sheet.
1.
Intake
A short written summary is more useful than a marketing deck. Tell us the borrower, the asset, the amount, the use of proceeds, existing liens, target closing date, and any constraint we should know on day one (flag, class condition, customer concentration, pending litigation, sanctions touchpoints).
2.
Mandate screen
We confirm that the file sits inside our lending mandate and that a security package can, in principle, be perfected. If it does not, we say so.
3.
Diligence
Maritime files: particulars, valuation, employment, insurance, corporate chart, KYC/AML, and vessel screening. ABL files: financials, agings, inventory composition, appraisals or field-exam scoping, lien search, and cash-management map. We use third-party surveyors, appraisers, examiners, and counsel as the file requires.
4.
Structure
The term sheet sets amount, advance rate or commitment, interest and fees, tenor and amortization, security, conditions precedent, covenants, reporting, events of default, and governing law. We expect negotiation. We do not expect the security package to be optional.
5.
Documentation and closing
Credit agreement or facility agreement, security documents, mortgages or UCC filings, control agreements, insurance broker letters, legal opinions where customary, and satisfaction of conditions precedent. Funding follows registration and any required notices.
6.
Monitoring
After close, we monitor the collateral. Vessel facilities require insurance maintenance, class, valuations, and earnings reporting. ABL facilities require borrowing-base certificates, agings, and periodic exams. Covenant defaults are addressed directly.
6.
Monitoring
After close, we monitor the collateral. Vessel facilities require insurance maintenance, class, valuations, and earnings reporting. ABL facilities require borrowing-base certificates, agings, and periodic exams. Covenant defaults are addressed directly.
What borrowers should expect from us
• A single point of contact through indication, term sheet, and close
• Written terms rather than verbal promises
• Confidential treatment of non-public information, subject to customary diligence disclosure to counsel, valuers, and funding partners bound by confidentiality
• No retail-style hard-sell
What we expect from borrowers
• Complete and accurate information
• Access to the asset, the books, and the relevant advisors
• Willingness to grant enforceable security
• A repayment thesis that does not depend on hope alone