Debt

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.