Briar Capital Real Estate Fund closed a new $6MM commercial real estate loan in Florida to a manufacturer of aerospace components.
 
Like most in the aerospace industry, this companies’ business came to a halt as many of their longtime customers stopped awarding new contracts due to the COVID pandemic. This led to a significant backlog of business as work piled up in the form of unawarded contracts.
 
With COVID in the rearview mirror, this backlog suddenly resulted in a record number of bids as customers quickly looked to increase the overall readiness of their fleets. Finding themselves in default with their incumbent lender given their sharp decline in financial results, this company lacked the significant funds to address this rapid growth in new business. After looking at all their options, they decided to re-leverage their assets for the much-needed liquidity.
 
Briar was first introduced to the company by multiple asset-based lenders considering a refinance of the working capital assets. While the ABL’s determined the working capital LOC need was not a fit for them, the responsibility fell to Briar to generate the liquidity from the companies owner-occupied real estate. Using an aggressive LTV, Briar was able to unlock the equity in the property while structuring a loan facility with a cash flow friendly, long-term amortization to provide them with the working capital they needed.