creative structuring and timely ideas
John Beacon had successfully developed hundreds of affordable condominium units and had enjoyed a long term relationship with his construction lender. Beacon was entering the second phase of his project in the summer of 2008 and his bank began to “act strange”, not returning calls and requesting information with an ever increasing frequency. Beacon called Redfish and we began to develop a strategy that would address his upcoming capital needs in the event that his lead lender walked. In the past Beacon had structured a single large non-revolving credit line to fund his construction but a construction facility in the range of $15 million was going to be difficult to obtain in a rapidly deteriorating credit environment. Redfish approached the problem by structuring a revolving credit facility that would allow Beacon to roll through his next two phases on a building by building basis, a structure which significantly reduced the borrowing need. With a proposed structure in place Redfish prepared a financing memorandum and assembled two local banks that together extended a facility that allowed Beacon to continue to build out his successful project. When his lead bank did close its lending window the effort paid off and was a win-win for both Beacon and the local banks.
