Recent Financial Compound Transactions

$18 million for two big box tenants in Southern CA, both tenants are credit tenants with long term leases although one lease expires in 2013.  Financial Compound structured a 15 year loan with windows of flexible prepayment penalty throughout the loan term to accomodate potential refinances or re-leasing upon primary lease and option period maturities.  Financial Compound also structured a pre-approved flexible leasing criteria for the 2013 lease maturity to accommodate, in light of the economic downturn, a potentially significant rent decrease for that space compared to what the tenant is paying today.  Loan terms include a 5.875% interest rate, 15 year loan, 27 year amortization, several periods of prepayment penalty at 3% or less, non-recourse, no lender fee, rate locked for 120 days at no charge.

$20 million credit facility for single family tax liens in the Northeast for an experienced operator in the tax lien industry.  This transaction offered the lender a 10% LTV on the single family homes which are the collateral behind the tax lien certificates, in addition to UCC1 filings on the certificates themselves.  While this transaction took a little while to wrap our heads around we underwrite it as one of the safest low leverage deals we have ever financed.  Financial Compound seeks additional banks to provide credit facilites for this group.  Each portfolio of tax liens is separate and unrelated to the other and the lender does not share collateral with any other lenders.