LANTERN CAPITAL

Management buy-out – Lending $6.5m

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Cash flow lend [no property security] for an MBO whereby Australia subsidiary of a NASDAQ listed company was purchased off the parent by the Australian directors. Turnover of $70.00m and funding was a mix of term debt, working capital, trade, FX and transactional banking. Undertook a full tender to all the major Australian Banks.

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Restructure of Agri MIS – Lending $5.0m

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Cash flow lend for land and forest assets rolling out of defunct MIS into a corporate borrowing structure on a non-recourse basis [no directors guarantees]. Assets are in production now for pulp and logging sales.

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Restructure / Refinance of business with significant ATO arrears - $3.0m

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Refinance St George client into a mix of specialist non-confirming lending and factoring/Debtor finance. Impaired asset at St George due to $800k+ ATO arrears. Business expanded into China and incumbent bank would not support any funding which generated the ATO position. Resulted in full refinance of St George with continued outstanding tax arrears that will be repaid from R&D tax concessions in Sep ’16. Clients funding costs came down with the new lending structure given the client was on penalties at St George.  

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Debt advisory / Consulting - $3.0m in debt

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Fee for service role in assisting a Tasmanian client in the logging, haulage, fertiliser, transport industries experiencing severe cash flow issues due to lack of support and understanding from their incumbent bank [banks hadn’t visited them for over 2 years]. Turnover of $5.0m with heavy equipment finance requirements. Assisting with lending restructuring, financial reporting, cash flow and projection modelling, new equipment lending and a range of other banking and finance advice and oversight.

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Refinance - $4.0m

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Successful refinance to main Australian bank of a large bakery business and associated entities. Relationship with existing bank became sour through a messy partnership dispute on an unrelated asset/business. Highly litigious and technical default issues but the new bank was able to see through the noise and park it as a side issue. Mix of term debt, asset finance and working capital along with full transactional and director’s personal borrowings. Ended a 50-year relationship with the existing bank in what was quite an emotionally charged process for all stakeholders.

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High net worth client - $7.0m

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Client needed $1.5m cash out on a luxury home in South Yarra. They have complex financial/legal structures in place as property developers with the cash waterfall flowing down from multiple SPV’s into multiple trust vehicles. Resulted in $7.0m home loan with major Australian bank. The right outcome on the valuation was the key issue as the property could have been easily argued as a development site which results in lending ratios reducing to 50% LVR. Worked very closely with the valuer and the bankers to achieve the right outcome. Achieved an 80% LVR lend with the client able to use the cash out unrestricted.  

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High net worth client - $3.0m

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Client had offers accepted via pre-sale/off the plan 18 months’ prior on three apartments in Prahran. Came to apply for finance a few months prior to the apartments settling and the application was declined at existing bank and a broker they tried to use at a few others. Main issue was the clients age [60+] and lenders would not give 30-year home loans and reduce loan terms to the point where servicing the loans was not practical.  Identified the right bank (Macquarie) and got there in time with a very sharp interest rate and a very relieved client who was staring down the barrel of losing $200,000 in deposits.

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Commercial Property Investment $6.355m

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18-month process to settlement whereby a large scale redevelopment of existing commercial premises purchased on vacant possession and developed into a multi-tenanted allied health leasing profile that created significant uplift in value. Client funded majority of the works outside normal construction lending parameters through leveraging other assets.

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The key to maximising gearing was the correct outcome on the valuation for the lender as the threats were having the valuation come back as a specialised asset, non-arm’s length tenancy profile, incorrect allocation of comparable sales and incorrect rental yields. Work together with the bank and chose the correct valuer to ensure that these issues were mostly mitigated in the eyes of the bank and the correct outcome was delivered. Highlights these days how much investment is required in working with valuers to ensure they understand what it is they are valuing.

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ATO second mortgage / judgement on credit check -$1.0m

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Client had a $250,000 ATO arrears and the ATO had lodged a second mortgage behind a bank on his home in Bondi to protect their position. Client had an existing judgement for previous tax arrears not paid [which was finalised] hence ruled out any major bank advancing funds to repay the ATO. Outcome was a refinance of existing lending at the existing bank and repayment of the ATO in full. Funded at a major non-conforming lender who saw past these issues at a rate of just under 6%. In 12 months we will refinance this client back to a major to avail of cheaper interest rate pricing. Co-ordinated with the ATO, client, accountant and new lenders to achieve the desired outcome.

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Urgent Home Loan - $4.8m

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Client of a very well-known real estate agency in Melbourne was left high and dry with 2 weeks before settlement on a new purchase of $6.0m luxury home in Toorak. Offer was signed 6 months prior and his bank decided not to proceed two weeks before settlement. We worked closely with another major lender around the clock and managed to settle the transaction on time with a competitive offer. Included having CKC value the property on a weekend and loan documents within the day.