Our Client is a self-made real estate developer seeking to build a major resort in the Caribbean. To accomplish his goal, he needed to raise $900 million in the capital.
The project is all about giving the people not just what they want, but what they need, and at a price, they can afford. The client wanted to offer his tenants not just a connection to a more peaceful world, but with the amenities they desire.
The client always used very expensive and restrictive debt or leverage finance to grow any of his projects.
Specifically, our client required a solution capable of:
- Accessing capital at the cheapest cost possible and with the least possible dilution
- Providing him with a structure that is long term with no personal guarantees and no prepayment penalty but also won’t put his project’s growth under a heavy burden
- Putting him in a position where he can meet his payment schedule with his major contractors; leading players in the industry.
Blackhawk Partners Solution
Blackhawk developed an optimal financing structure along with 15-year term money at a very competitive rate of 5.5%. This would allow him access to the capital markets on terms he could never get on his own.
Blackhawk also advised the client all along the development process. Advice included how to position the project in the market and how to engage the right customers.
Blackhawk also advised the developer how to be cash flow positive by year-end 2019; only one year after starting his project.
By having the client utilize our SBLC levered concept, it allowed him to be funded to the tune of $900 million over 3 years and have his project be a unique player in the market right from the get-go.
Nowhere in the Caribbean or even in the United States, could the developer access such a massive loan at such a low-cost capital. The catch: He had to show 20% as a Proof of Funds Available to access our capital – which he did.
At the end of the day, what triggers our deals are 2 basic things:
- Operators track record
- Operators skin in the game
With such criteria in place, the sky is the limit.