For: Refinance of x3 Youth Hostels
CS Finance were approached by a Customer who was struggling to maintain a deteriorating relationship with his Bank who refused to support the Business. As would be common in the sector, the buildings required modest capital expenditure however the Bank were unwilling to consider any new monies.
Following review, it was agreed to move the Company accounts to a more progressive financial Bank who would support the Business going forward.
The new Bank agreed to refinance the existing debt plus sanction additional monies to fund the construction of a new Bar in one of the Hostels that was projected to provide significant additional income.
Facilities totalling £4,000,000 were sanctioned, on a x5 year amortising profile, at LIBOR plus 2.5%