We make senior secured loans to out of home advertising and transit advertising companies. We avoid mezzanine loans, stick loans and loans to startup companies with no track record.
Loan amount: $20,000 to $1 million.
Loan Use: Digital sign construction, steel monopole construction, outdoor company acquisitions, partner buyouts.
Personal Guarantee: Yes, from business owner so that we know our interests are aligned in the event of difficulties.
Debt/Revenue: 3:1 or less.
Debt/Cashflow (EBIDTA): 6:1 of less.
Collateral: A UCC-1 filing on all assets of business; an assignment of material agreements and leases; and a pledge of equity.
Other Permitted Debt: None.
Interest Rate: Prime plus 6% floating with a floor at 12%.
Loan Fee: 2% of the loan amount, paid at closing.
Transaction fee: 2% of the loan amount, for lender’s legal and documentation costs, paid on acceptance of loan commitment.
Amortization: 7-20 years withy a 5 year balloon. 7-10 years for digital signs. 10-20 years for monopoles with long term leases.