Opportunities don't wait. Sometimes there is a need for funds for working capital and expansion that requires a business to move faster than it takes to arrange permanent financing. Salomon Brothers enables Borrowers that need capital for up to one year to borrow up to $5 million.
Salomon Brothers can provide a contingent commitment within three days. Closing can occur as soon as seven business days from the time all material information is provided by the prospective borrower.
Funding is subject to the following criteria.
Take-out...... A clearly defined takeout with high confidence in
Collateral.... The borrower must have business assets that can be
pledged as security. Assets could include tangible and
intangible property. LTV depends on the assets and
may require a valuation, see LTV guidelines below.
Up to 80% Tangible Assets
Up to 50% Intangible Assets
Salomon Brothers can complete a valuation within 48
hours, if necessary.
Guaranty.... Principals must provide a personally guaranty.
Proceeds.... Proceeds must be used for a purpose that clearly
increases enterprise value.
Amount......... $500,000 to $5,000,000.
Rate................... Fixed Rate of 7% to 19%, subject to risk assessment.
Payment...... All P & I paid in balloon at maturity.
Equity............... No equity kicker.
Term.................. 6 to 12 months.
Salomon Brothers charges a fee as arranger, payable at closing, and a fee for any valuation or business advisory services that may be required. There is no upfront fee unless Salomon Brothers determines that a valuation, advisory or other upfront work is required or that transaction related expenses or expedited timing warrant it. If there is an upfront fee, it will offset any amount due at closing.
Interested prospective borrowers should contact Salomon Brothers and include an executive summary describing the business, takeout, collateral and use of proceeds.