
This is a result of a direct, working relationship that the private investment banker has.
He can prove that JPMorgan is behind his company and they will offer a bond on a 1:1 basis
to offer deferred principal protection. The reason JPM will offer it is because a portion of any
equity capital raised goes directly to JPM to pay for the bond and the balance of
funds will go to the project. It's a very conservative approach to a risk capital venture.
For a possible $1B deal,.the JPM structure would garner the project principal about $550MM to
invest in the project. $450MM goes to purchasing the JPMorgan bond.
This is for cash investors only.
All that bond does is secure the cash that a client is bringing to a deal. JPM doesn't want to
see a bank letter, they need to see cash in an account statement...then they will take the
deal seriously.
If a client/project principal doesn't like the idea of giving up 50%, they are really going to
hate what the market is like now (for investment grade paper), it's up to 60% Leaving you
with 40% for the project.. The problem with the zero bonds in today's market is all the
big banks got gov't bailout money, so they aren't paying as much to investors because they
got all that free taxpayer money. So, since the yields are down, it takes more money (up to
60%) to get the 10 yr face amount.
We can move as fast as your investor is ready to bring the money.
The bond can be set up within a week.
This option eliminates the risk of the client/principal being sued for misappropriation of the
money because the invested principal is guaranteed. Tell your investor that JPMorgan Chase
or Wells Fargo is guaranteeing the return of principal.
Cash Investors: 100% Deferred Principal Protection $5MM Minimum
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The Film Matrix MovieWorks, L.L.C. is an agent for an East Coast based Private Lender (a large US-based asset management firm that is
currently originating loans for quality projects) which has several billion dollars in verifiable closings with Fortune 500 companies.
- Fees: At closing - 2 to 3 points
JPM's fees are built into the bond This is also available via Wells Fargo Santa Barbara
- Lender Benefits: no risk assessment, no approval of projects, no equity, no lender fees, no money
down, 100% + LTV, 100% at closing (not a line of credit), loan is non-recourse to borrower and
project (lender calls on the bankable guarantee, not the project), funding time line of 5 days after
final docs, no post funding reporting, no oversight (audits, frequent reviews, board representation),
no covenants and reporting to credit agencies, Borrower is able to defer principal and interest
payments.