Briar Capital Real Estate Fund closed an $8.95 million real estate loan for a family-owned original equipment manufacturer of drivetrain and powertrain assemblies in Michigan. Briar Capital’s real estate loan was closed in conjunction with a total debt and operational restructuring organized by a turnaround consulting firm.
With the OEM still experiencing the effects of COVID-19-related supply chain issues, its bank decided its business no longer fit the bank’s credit profile. As a result, the bank asked the OEM to move its entire lending relationship, which consisted of a revolving line of credit and equipment and real estate term facilities. After first awarding the business to another lender, the turnaround firm opted to separate the different loan facilities.
Concurrent to reaching out to a non-bank asset-based lender to provide a $23 million revolving line of credit and equipment term loan, the turnaround firm contacted Briar Capital to provide the $8.95 million real estate term debt loan. Briar Capital and the ABL lender worked together to close the facilities simultaneously. Sue Holliday, chief credit officer of Briar Capital Real Estate Fund, coordinated the loans and orchestrated the closing.
“This is another notable example of Briar Capital working collaboratively within the ABL community to provide real estate financing solutions,” Holliday said. “While our entire focus is asset-based real estate lending, our years of experience as a former traditional ABL lender helped us close this facility quickly so the company could return their attention to running their business free of financing distractions.”
