Debt

We make senior secured loans to out of home advertising and transit advertising companies.  We avoid

  • Radio station loans
  • Newspaper loans
  • Magazine loans
  • Mezzanine loans
  • Loans to startup companies without a track record.

Our loan terms usually include the following.

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.

Hits: 22