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SG Credit Partners Provides $6 Million Guarantor Based Loan
February 9, 2021
Source: SG Credit Partners
SG Credit Partners provided a $6 million guarantor-based loan for a single-asset real estate holding company operating as a subsidiary of a broader multi-family / student housing real estate syndication portfolio.
The Company needed capital quickly to execute on additional portfolio purchases and support working capital at the parent level, where COVID-19 restrictions had temporarily affected occupancy rates at some of the student housing assets.
Although the parent company and guarantor had a demonstrated history of success, there was no single property that had a value sufficient to provide collateral coverage on the loan. By utilizing a holistic approach of looking at both business and guarantor assets, SG was able to get comfortable with a $6MM facility secured by two properties.
This transaction highlights SG’s ability to structure and underwrite collateral-based / guarantor-based loans. While many know SG as a cash flow-based lender, it now provides special situation (balance sheet) loans requiring creativity, flexibility, and speed to close.
About Us:
SG Credit Partners is a national lender providing $1 - $10 million of situational capital to lower middle market businesses. Our deals are structured as a term loan (1st lien, 2nd lien, split lien, and unitranche structures; 6-36 month term) and range from interest-only to amortizing depending on credit profile and deal structure. What makes our platform unique is our ability to structure deals around a broad set of borrower types, use of proceeds, and situations – we can underwrite a deal solely based on cash flow, collateral, enterprise value, a strong/secured guaranty, or a combination thereof. Our borrowers generally fit one of the following credit profiles – cash flow, collateral, technology (recurring revenue/SaaS), or high net worth guarantor.
Headquartered in Southern California with offices throughout the country, SG Credit Partners has provided in excess of $300 million to 150+ borrowers across a variety of industries. We pride ourselves on flexibility, speed and certainty to close as well as providing creatively structured solutions that do not require equity and have minimal covenants. For more information, visit www.sgcreditpartners.com.
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