Old Hill Partners provided a $7 million senior secured term loan secured by water rights in the western U.S. for a real estate developer looking to warehouse water resources for a planned development project.
The financing served as a hedge against escalating prices for water rights. It was priced with current and deferred interest components. This transaction arose as a sequel to a prior $11 million credit facility Old Hill provided to the company in 2019.
“We operate in a segment of the lending market that requires specialized knowledge and that is being avoided by large traditional banks due to post-crisis regulatory constraints. The firm’s experience in the asset-based lending (ABL) sector allowed us to execute on a transaction that offered a flexible financing solution for the borrower that is not available from traditional lenders. We worked very closely with the borrower to craft a custom transaction, secured by strong collateral, that aligned the interests of all involved,” Sam Adams, senior portfolio manager at Old Hill Partners, said.
