Review request to co-sponsor a new USDA-Guaranteed (80%) debt refinance transaction as a participant with the lender of record. The borrower is the owner of a marine supply vessel based in Louisiana. The debt being refinanced was obtained for the borrower to acquire and improve the vessel. The primary debt being refinanced has a balloon payment that will become due and payable in 2022. The remaining debt refinanced by this consists of a line of credit that was incurred for capital expenditures and improvements to the vessel. The borrower of this request commenced operations of the vessel in September, 2018. As the business has achieved profitability, management seeks to refinance the foregoing debt on reasonable terms.

The vessel is a 171’ marine supply vessel that was originally assembled in 2013. The operations of the vessel are maintained through a third party service contract with a professional marine supply company. The third party servicer advertises this vessel as part of its fleet and has multiple arrangements with varying industries such as aerospace, scientific exploration, government surveying, oil & gas, etc. The third party servicer is the marine vessel manager of a SpaceX program.

The principals/guarantors of the business include two (2) medical practitioners and a retired lender. Collectively, they hold interest in more than 63 affiliates spread among varying industries. Sponsor/guarantor invested in a deep-water support vessel in the Gulf Coast approximately 8 years ago and experienced success. It was this endeavor that led him to partner with the remaining sponsors (longtime friends) to found the company and purchase the subject vessel.

The principals plan to continue the current operations into the foreseeable future and will continue to utilize the services of the third party servicer to operate the vessel.

Loan ID 0106
DSCR 4.22
LTV 52.73
Note Rate 6.5
Property Location LA
NAICS 532411
Guaranty Type USDA
Loan Term 13 years
Rate type Var
Note date N/A
Maturity date N/A
Participation Availability Amount $0
Minimum Participation Amount $250,000
Original Loan Amount $2,900,000
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