On the following page is a sample of some of the transactions Colebrook has been involved in during the past ten 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, which now has four participating financial institutions involved in the loans. At various times during the course of the relationship we have extended inventory financing for specific needs. Our familiarity with the company, its products and its history enables us to work efficiently and effectively to provide the financing they need.
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, and the extension of a small construction loan for additional inventory. The relationship now totals $16 million.
Hypothecation Loans to a Long-Established West Coast Vacation Club
During their banking careers, the principals of Colebrook had a lending relationship with this organization dating back to 1988. They re-established the connection at Colebrook in 2005 and have expanded it since that time. Unlike most timeshare developers, this client receives a high percentage of their sales in cash and does not need receivable funding on a weekly or monthly basis. They maintain a line to handle seasonal cash needs and acquisitions, and have expedited access to capital without having to introduce a new lender to the process during a time-sensitive acquisition.
Hypothecation Loan to a Mexican Developer
Colebrook established this relationship in 2005 with a $1 million line to finance U.S. purchasers and has expanded it to $3 million. Many foreign developers have difficulty dealing with traditional U.S. timeshare lenders because of the nuances of lending on receivables from a project located in a foreign country. As a smaller, nimbler company, Colebrook has been able to lend to developers in Mexico and the Caribbean.
Hypothecation Loans to a California 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 $5 million loan and after expanding to include the takeout of a previous lender now totals $17million.