Project Description

Project Peer

SITUATION

Partnered with Bank of America to provide an aggregate $400MM senior secured ABL revolver covered by inventory and A/R.

GHOST TREE SOLUTION

  • $350MM revolver, $15MM Middle-Out loan, $35MM Last-Out loan
  • Prepayment Premium: Greater of make-whole or 3% through Y3, par thereafter
  • Borrowing Base: eligible A/R plus eligible inventory

SOURCING

Proprietary network

CORE PRINCIPLES

FOCUS ON DOWNSIDE PROTECTION

Hard-asset-backed loan underwritten to liquidation value, not restructured going-concern value.

ATTRACTIVELY STRUCTURED

Loan structured to be same voting class as the first-out revolver ensuring alignment with Bank of America.

MULTIPLE PATHS TO EXIT

Normal-course refinancing, going-concern Chapter 11 refinancing, Chapter 7 liquidation.

ASSET COVERAGE

Conservative Net Orderly Liquidation Value with significant reserves built into borrowing base.

AVOID DISTRESS

Issued as a performing loan despite the existence of a distressing cash flow loan due to an enhanced priority claim.

National retailer chain providing an assortment of unique imported furniture, home décor, and tableware.

INVESTMENT DATE

December 2018

PROJ. INVESTMENT TERM

2 Years

SECURITY

Senior Sec. Term Loan

TOTAL TRANCHE SIZE

$35MM

COUPON

L+800

LTV

60%

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