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Bridge Term Loan Agreement
When Olayan America Corporation wanted to acquire the Sony Building in 2016, it took out a bridge loan from ING Capital. The short-term loan was approved very quickly, which allowed Olayan to seal the deal on the Sony building with shipping. The loan helped cover some of the building`s purchase costs until Olayan America secured longer-term financing. What is a bridge loan? A bridge loan is a short-term loan used by borrowers to meet their short-term financial requirements. Also known as Gap Financing or Swing Loan, it serves as a viable option to meet immediate cash needs. It is usually extended for a short period of up to twelve months. However, it is offered at a high interest rate and is usually with a property as collateral. There are a number of important points to consider when establishing a bridge financing contract. Bridge loans typically have a faster application, authorization, and financing process than traditional loans. However, in exchange for their convenience, these loans usually have relatively short maturities, high interest rates, and high initiation fees. In general, borrowers accept these terms because they need quick and convenient access to money. They are willing to pay high interest because they know the loan is short-term and they plan to repay it quickly with long-term reduced-rate financing. In addition, most bridging loans do not have repayment fines.
These types of credit are also called bridge financing or bridge credit. Also known as interim financing, empty financing or swing loans, bridge loans close the gap at a time when financing is needed but not yet available. Businesses and individuals use bridge loans and lenders can tailor these loans to many different situations. Parties: BY PACIFIC HOLDINGS, INC. | The credit parties, Jefferies Finance LLC | IME LLC | HEWW EQUIPMENT LLC | Highbridge Capital Management, LLC | Highbridge International, LLC | Agent Whitebox Advisors LLC | BY NEW MEXICO LLC | By Pacific Holdings, Inc | by petroleum corporation| BY PICEANCE ENERGY EQUITY LLC | BY UTAH LLC | BY WASHINGTON LLC | WB MACAU55, LTD Document Date: 15.07.2016 Sector: Oil and gas exploitation Sector: Energy In the real estate sector, bridge loans allow the buyer to obtain more finances for a new property, while preserving the existing property as collateral. For example, if a home buyer wants to buy a new home and there is a time difference between buying a new home and selling the old home, a home buyback loan can be used to make the purchase easier. . . .