Old Hill Partners Completes a $7 million Senior Secured Term Loan secured by Water Rights
DARIEN, Conn., July 12, 2021 (GLOBE NEWSWIRE) -- Old Hill Partners recently provided a $7 million senior secured term loan secured by water rights in the Western U.S. We financed a real estate developer looking to warehouse water resources for a planned development project. The financing served as a hedge against escalating prices for water rights. It was priced with current and deferred interest components. This transaction arose as a sequel to a prior $11 million credit facility Old Hill provided to the company in 2019.
“We operate in a segment of the lending market that requires specialized knowledge and that is being avoided by large traditional banks due to post-crisis regulatory constraints. The firm’s experience in the asset-based lending (ABL) sector allowed us to execute on a transaction that offered a flexible financing solution for the borrower that is not available from traditional lenders. We worked very closely with the borrower to craft a custom transaction, secured by strong collateral, that aligned the interests of all involved,” said, Sam Adams, Senior Portfolio Manager at Old Hill.
Old Hill provides asset-based lending solutions for borrowers seeking $10 to $50 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-to-term facilities of up to four years and loan-to-value ratios in the range of 35% to 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery, and equipment.
Old Hill Partners Inc. is an alternative asset manager focused on asset-based lending transactions with small- and medium-sized businesses. As an SEC-registered investment advisor, we operate at the crossroads of investors seeking attractive risk-adjusted yields and emerging companies seeking capital for expansion, acquisitions, or growth.