Loan Participation
A single note issued jointly by Arctaris and a partner bank with a competitive, blended rate to the borrower and a shared lien, with Arctaris taking the “last out” position.
BENEFITS TO PARTNER BANK:
- Provides an extra layer of credit support to banks to meet credit policy guidelines
- Simplified execution of loan package vs. traditional senior/subordinated structure increases probability and speed of closing while reducing costs
- Provides a cash collateral pledge and support for senior debt facility