On the following page is a sample of some of the transactions Colebrook has been involved in during the past twelve years. A common thread is the growth of relationships from a relatively small amount to levels of $20 million or $30 million. Most of our competitors prefer either small loans or big loans, and none has Colebrook’s ability to stay with a client as they grow, maintaining the continuity of the relationship.
Hypothecation Loans to a Large Regional Developer
This relationship began in 2003 with a $1 million dollar loan and has grown to a total of more than $30 million in outstanding loans and commitments. As the company grew, so did its relationship with Colebrook. At various times during the course of the relationship we have extended inventory financing for specific needs, and provided financing for portfolios and companies the customer was acquiring. Our familiarity with the company, its products and its history enables us to work efficiently and effectively to provide the financing they need. We have provided two facilities that have enabled the company to fix the interest rate on a portion of its loans, and have assisted them in the finance of two complex acquisitions that required some creative and flexible thinking on the part of Colebrook.
Loan Purchase Facility to a Western US Developer
During the financial crisis of 2008 and 2009, Colebrook was approached by a number of companies whose lenders had elected not to renew their facilities and who were in immediate need of a new funding source. In this instance, Colebrook established a $4 million dollar receivable purchase facility which allowed the company to continue its sales efforts without interruption. As is the case with so many of Colebrook’s relationships, this one expanded to include an increase to the line for the initial resort, the establishment of a purchase line for an affiliated resort, the takeout of two portfolios held by the company’s previous lender, a hypothecation loan encompassing the two initial projects, a separate loan for an affiliated project, and the extension of two small construction loans for additional inventory. The relationship now totals $16 million and has grown from one to three projects, with a fourth scheduled to be added in early 2015.
Hypothecation Loan to a Large Private Developer
This developer has relationships with other lenders but, having been caught short during the last financial crisis, has maintained a relationship with Colebrook to ensure that, should their bank lender terminate the relationship, they would be able to look to Colebrook to maintain the continuity of their funding. Developers appreciate our continuing market presence, and the consistency of our approach under different economic environments.
Hypothecation Loans to a West Coast Vacation Club
One of the most significant developments in the timeshare industry during the past several years has been the growth of clubs that own inventory in a number of different resorts. Colebrook was among the first lenders to understand the club concept and lend against the receivables under a structure that protects the owners and the lender. This relationship began as a $3 million loan to a relatively new company. The company has expanded and effected acquisitions, and the relationship with Colebrook is now $32 million. We were there in the early days, nurturing the relationship, providing feedback on operations, and watching the company prosper and grow.