About Remington Financial Group, Inc.

Remington has built a successful track record of closing the most challenging debt, mezzanine, bridge, and equity capital transactions since 1993. Our firm has strong connections to hundreds of actively funding sources across the capital stack. We develop and execute financial structures that turn problematic transactions into closings.

Equity financing is an important option for Remington clients to consider as they explore the gamut of funding solutions available. When it comes to equity investment, the experience and knowledge of Remington professionals is unmatched in the industry, which is why Remington professionals often are called upon to identify appropriate equity partners for clients seeking equity assistance.

Remington Financial Group - About Equity Capital

Equity financing is an important option for Remington clients to consider as they explore the gamut of funding solutions available. When it comes to equity investment, the experience and knowledge of Remington professionals is unmatched in the industry, which is why Remington professionals often are called upon to identify appropriate equity partners for clients seeking equity assistance.

At Remington, our Structured Finance Group approaches equity financing in the same way we do for each and every transaction across the capital stack. Our financing experts become, in a sense, an extension of the client. As such, we come to fully understand the client's overall business plan and contribute to it in significant ways, providing comprehensive transaction analysis and advice based on a real-time assessment of the capital markets. The result is the appropriate capital structure involving the right equity partners as determined by client needs and market possibilities.

Remington Financial Group - Understanding the Capital Stack

What is the capital stack? It is the total mix of capital invested in a project, including pure debt, hybrid debt, and equity. The higher the investment appears in the stack, the greater the risk for that investment. The lower the placement, the less the risk. As a consequence, higher stack positions expect greater returns on the capital invested because of the higher risk involved.

Remington Financial Group, Inc. - Plans a Fund for Bridge Loans

"Your best access to commercial capital" is more than just a slogan at Remington Financial Group. It's a reality! Not only does Remington provide the best access to commercial capital through its global network of 400 active lenders and investors, Remington hopes to become an integral part of that network by forming a joint venture company to raise a $200 million bridge loan financing fund. 
 
And that is good news for commercial real estate brokers and their clients, especially those in need of short-term financing that "bridges" the gap between funds needed now and when long-term financing becomes available.
 
To help close that gap, Remington has joined forces with Black Hawk Capital Managers to form Secured Capital Income Fund LP (SCIF). Currently raising institutional interest in SCIF is Secured Opportunity Management, LLC, a joint venture company created by Remington and Black Hawk to manage the planned bridge loan financing fund. Black Hawk is a restructuring and bridge loan specialist with over $1.5 billion in commercial transactions since 1995.
 
When active, SCIF is expected to be a bridge loan financing fund with a powerful origination capability. Right off the bat, it will have the capability of identifying the bridge loan needs of all the loan originations transacted not only by Remington but also by Black Hawk.  For Remington brokers and their clients, that is good news, indeed, since about 20% of the 400 loan originations transacted annually by our financing specialists require bridge loan financing.
 
As Remington Chairman Andy Bogdanoff sees it, the formation of SCIF represents "an exciting expansion of Remington's business plan and a reflection of the dedication our company has to providing the best access to commercial capital for brokers and their clients nationwide."

So if there's a financing gap in your future, Remington can help you close it. Give me a call and let's talk about it.

Remington Financial Group - Additional Financing Programs

Senior Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Mezzanine Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Aggregate Leverage up to 85%
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Preferred Equity

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Equity

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Joint Venture Financing

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Active Investment
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Remington Arranges Specialized Financing For The Following Property Types and Business Purposes:

• Land
• Industrial
• Multifamily
• Office
• Retail
• Mixed Use
• Hospitality
• Medical Office
• Healthcare Facilities
• Senior Housing
• Student Housing
• Special Purpose
• Restaurant
• Self Storage
• Manufactured Home Parks
• Business Working Capital
• Business Investment Capital
• Entertainment & Multimedia
• Franchises
• Bridge Loans
• Business Loans without Real Estate
• Hard Money

About Remington Financial Group, Inc.

Remington Financial Group offers commercial clients an extensive network of private and public capital sources to help increase creative financing options - dramatically improving close rates for specialized funding and unique financing ventures. In the area of mezzanine financing, Remington delivers expertise and competitive transaction options, especially in today's challenging market conditions.

Remington has built a successful track record of closing the most challenging debt, mezzanine, bridge, and equity capital transactions since 1993. Our firm has strong connections to hundreds of actively funding sources across the capital stack. We develop and execute financial structures that turn problematic transactions into closings.

Remington Financial Group - What is Mezzanine Financing?

It is not uncommon for commercial real estate owners to structure a financing transaction with multiple layers of capital, each with a different risk-reward calculation. The professionals at Remington Financial Group have extensive expertise in all aspects of commercial financing, having handled over the years billions of dollars in corporate and real estate transactions involving all types of property across the capital stack.

For those commercial real estate and other businesses looking to add debt rather than equity when senior debt is maxed out near 70% LTV, borrowers may want to consider mezzanine financing. One of the uses of mezzanine debt is to add as much leverage as possible by increasing LTV to about 75-90%. It is also common for real estate developers to secure mezzanine loans when supplemental financing is needed.

By definition, mezzanine financing fills the gap between equity and senior debt in the capital stack and is subordinated to the senior. Sources of mezzanine debt include pension funds, insurance companies, other financial institutions, state agencies, and mezzanine debt funds.

Because mezzanine debt is considered riskier than senior debt with respect to collateral and cash flow rights, lenders of mezzanine loans tend to make their lending decisions based on the predictability of cash flow in excess of that required to service senior debt. In addition, lenders offering mezzanine debt frequently require an equity kicker above and beyond the higher interest income usually received to compensate for the added risk.

The maturity of typical mezzanine loans tends to range from three to five years, with principal payments commonly deferred until senior debt is retired. And while, by its nature, mezzanine financing has no hard and fast terms or structures, there are a few terms commonly used in commercial real estate transactions. The most common type used with stabilized properties is straight debt, where the lender receives no equity and has no management participation. On the other hand, when looking to increase LTV to 90%, borrowers may have to give up some cash flow equity and upside potential to lenders through the use of a participating note.

Because of the complexity of terms, costs and suitability of mezzanine and other forms of financing, real estate owners, developers and brokers across the country have come to rely on the experts at Remington Financial Group for their expert advisory services and ready access to its well-funded global network of capital sources. Whatever financing may be required, the professionals at Remington can help secure it.

Remington Financial Group - Testimonial

"When dealing with financial transactions, you need a company that has a proven track record, cares about their clients and understands the importance of each project. RFG not only possess these traits, they also provide many other attributes that make their organization one of the best in the business. I look forward to long and successful relationship with RFG."

- B. Owens

Remington Financial Group, Inc. - Distressed Owner Recapitalization Program

Remington Financial Group has several financing programs for commercial real estate brokers working with property owners. One is the Distressed Owner Recapitalization (DOR) Program, which was inspired by Andy Bogdanoff, Chairman of Remington. Andy Bogdanoff has been in the financial services industry for 35 years and founded Remington Financial Group in 1993.

For owners and brokers unable to refinance loans, Remington can tie together our expert capital advisory services with access to hundreds of active private funding sources ready, willing, and able to recapitalize troubled commercial real estate assets across the capital stack.

An example recipient of funding arranged by Remington was an RV park that required property upgrades in order to reverse declining sales. Acting as financial adviser, Remington restructured the distressed owner's business plan in such a way that he could successfully tap into our extensive network of private lenders and investors. Instead of having to sell or declare bankruptcy, the owner secured a loan to stay in business.

Remington Financial Group, Inc. - Details About the DOR Program

While much of the commentary in the commercial real estate industry today focuses on investor opportunities to acquire distressed debt, the Distressed Owner Recapitalization (DOR) Program by Remington Financial Group focuses on helping troubled owners and developers. The Capital Markets and Structured Finance groups at Remington are offering solutions every day to the ongoing liquidity crisis by providing access to more active funding sources across the capital stack. When better access to active funding sources is combined with expert advisory services, the DOR Program will positively impact owner recapitalization.

For experienced owners of existing income-producing properties looking to refinance, the program by Remington offers access to investors that will purchase the note from the bank at a discount. Owners will continue to make the original payments to the new investor and participate in the up side when values increase.

In those instances where the bank won't discount the note for the income-producing property, Remington has access to investors that will recapitalize it. They will provide the equity and/or mezzanine financing required to secure new senior debt of 50-65% LTV. Owners will participate in the upside once the market improves.

For experienced developers of partially completed projects that need capital to finish and operate the property, Remington has access to investors that will purchase the note from the bank at a discount, allowing the developer to complete the project and operate the property. The developer will continue to make the original payments to the new investor and participate in the upside when property values increase.

In those instances where the bank won't discount the note for partially completed projects, Remington has access to investors that will recapitalize the project through completion, providing the equity, mezzanine financing, and/or senior debt to payoff the existing construction loan. The developer participates in the upside once the market improves.

Remington Finanical Group - Available Financing Programs

Senior Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Mezzanine Debt

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Aggregate Leverage up to 85%
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Preferred Equity

• All Property Types and Corporate Purposes
• $500,000 Minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Equity

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Joint Venture Financing

• All Property Types and Corporate Purposes
• $500,000 minimum in the US and $5,000,000 Internationally
• Active Investment
• Acquisition, Development, Construction Loans, Construction to Permanent, Rehabilitation, Bridge Loans, Refinance

Remington Arranges Specialized Financing For The Following Property Types and Business Purposes:

• Land
• Industrial
• Multifamily
• Office
• Retail
• Mixed Use
• Hospitality
• Medical Office
• Healthcare Facilities
• Senior Housing
• Student Housing
• Special Purpose
• Restaurant
• Self Storage
• Manufactured Home Parks
• Business Working Capital
• Business Investment Capital
• Entertainment & Multimedia
• Franchises
• Bridge Loans
• Business Loans without Real Estate
• Hard Money

Remington Financial Group, Inc. - Provides Expert Advisory Services

Remington Financial Group's Key to successfully closing even the most complex and challenging commercial financing transactions can be summarized as follows:

• Knowledge of the market.
• Experience in solving even the most problematic projects.
• Creativity in restructuring transactions.
• Ready access to hundreds of active capital sources.
• Commitment to pull it all together.

The advisory services at Remington Financial Group combine all five attributes needed for success in today's tight market, especially for those commercial projects unable to obtain debt, mezzanine, or equity capital from conventional sources.  Those companies most likely to benefit from our services include those:

• Currently restructuring.
• Emerging from bankruptcy.
• Needing recapitalization.
• Considering leveraged acquisitions.
• On a tight timeline to access capital.

At Remington, our knowledgeable and experienced team of experts works closely with clients to evaluate and creatively restructure transactions into new financing opportunities. Combining this insightful advisory service with the strong relationships we have developed with hundreds of active funding sources, clients of Remington gain the industry's best access to competitive commercial capital available today.

Remington Financial Group - Has Access to Capital Through Our Capital Markets Group

What distinguishes Remington Financial Group from others in the financial services field is the dedicated staff of our unique Capital Markets Group and the extraordinary access it provides to all types of commercial capital.

Access to available capital has been the hallmark of Remington since 1993. It is key to the successful track record Remington has established over the years, providing hundreds of commercial real estate brokers and their clients with billions of dollars in financing for even the most challenging debt, mezzanine and equity transactions.

Responsible for identifying, nurturing and expanding our global network of lenders and investors, the Capital Markets Group searches the world over, day in and day out, for new and active sources of commercial capital. As a result, these market specialists have amassed solid relationships with nearly 400 lenders and investors ready, willing and able to deploy available capital for viable CRE projects requiring minimum U.S. loan amounts of $500,000 and $5 million from sources abroad.

Staffed by specialists with impressive backgrounds in venture capital, CRE lending, institutional investment consulting and other financial services, Remington Capital Markets Group is uniquely equipped to provide CRE brokers and their clients with the best possible financing opportunities available in the market today.

In addition to building and enhancing the Remington global network of lenders and investors, the Capital Markets Group is also responsible for managing special projects, including the Secured Capital Income Fund LP, a joint venture company recently-established to provide Remington Financial Group with a planned entry into the capital markets initially through bridge loan financing.

Remington Financial Group, Inc. - Construction Loans

Remington Financial Group offers clients an extensive network of private and public capital sources. Our team of experts increases financing options - dramatically improving close rates for specialized funding and unique financing ventures. In construction financing, Remington delivers expertise and experience to deliver competitive transaction options, especially in today's challenging market conditions.

Remington has built a successful track record of closing the most challenging debt, mezzanine, construction, bridge, and equity capital transactions since 1993. Remington has strong connections to hundreds of active funding sources across the capital stack. We develop and execute financial structures that turn problematic transactions into closings.

Remington Financial Group, Inc. - What is a Construction Loan

A commercial construction loan is a loan used to finance the construction of commercial property, such as office complexes, retail centers, apartments, hotels, warehouses, and other business properties. Construction loans are short-term and meant to be paid off when construction is completed.

While construction loan programs offer differing features, they also have a number of characteristics in common. For example, construction loans generally require interest only payments during construction; terms typically are for 12 to 36 months; most lenders require a 12-month interest reserve; and pay off occurs when a certificate of occupancy is issued.
Because borrowers usually require follow-on financing when a construction loan comes due, lenders sometimes offer construction-to-permanent loan programs that provide construction loans during the building phase and longer-term fixed-rate financing that kicks in upon issuance of the certificate of occupancy. This two-in-one loan process tends to be more convenient and less costly for borrowers in that there is only one loan application and one closing, with associated fees, instead of two.

Because of the complexity of construction loan financing, borrowers may find it difficult to compare construction-to-permanent loan financing with the two-loan process. That's where the experts of Remington Financial Group can help. The combined market-focused expertise of the Structured Finance Group at Remington and our Capital Markets Group, with its global network of public and private capital sources, takes the guess work out of construction lending so that commercial real estate clients are able to secure the best possible interest rates and terms consistent with their objectives and market conditions at the time.

Remington Financial Group - Has Construction Loans for the Following Property Types

Remington Financial Group, Inc. - About Bridge Loans

The bridge loan is a form of financing that "bridges" the gap between funds needed now and when longer-term financing becomes available. It can be a key component in an owner's long-term financing strategy, particularly for those faced with a here-and-now opportunity or other shorter-term situation such as improving or selling a property.

Real estate owners often use a bridge loan to purchase a second property before the sale of the first property closes. Then the proceeds from the sale are used to pay off the bridge loan. This illustrates the important "exit strategy" borrowers must have before an investor makes a bridge loan. In this example, the investor would need to see a signed sales agreement spelling out where, when, and how the bridge loan will be repaid.

Bridge financing almost always needs to be arranged and closed quickly. Such loans tend to be for 6 to 12 months with a possible 12-month extension. They are usually structured as simple interest only loans with no pre-payment penalty and all principal due in full at maturity. Risk to the investor is minimal since the loans are underwritten based on existing equity in the property and the exit strategy is defined.

Because of the owner's need for timeliness, banks and other institutional lenders are not usually effective when it comes to bridge loans. That's why the Capital Markets Group at Remington provides access to investors capable of making on-the-spot decisions. Included among them are hedge funds, private equity groups, mortgage pools and other sources of private capital.

About Remington Financial Group

In the capital services industry, success determines reputation. Since Remington Financial Group was founded in 1993, our financing professionals have handled billions of dollars in commercial lending transactions. Under the leadership of Andy Bogdanoff, an industry expert with more than 35 years experience in commercial real estate financing, Remington has earned a solid reputation for excellent service and dedicated client advocacy among commercial clients, particularly those unable to secure traditional bank financing.

Our ability to reconcile the interests of borrowers and lenders while structuring creative solutions in even the most challenging transactions is what differentiates Remington from other capital services companies. The market-focused financing expertise of Remington professionals stretches across the capital stack and includes virtually all types of commercial real estate and general business property.

Access is the key to client success at Remington.

Access to the unmatched expertise of our Structured Finance Group

Access to our highly regarded global network of private and public sources of capital

Access to equity, mezzanine, and senior debt financing, as well as special-purpose bridge and construction loans in minimum loan amounts of $500,000 in the U.S. and $5 million internationally

Every day we work closely with owners, developers, and lenders, mixing and matching commercial lending options in creative ways that will secure the best possible financing consistent with client objectives and market conditions. Let's discuss your specific situation today.

Remington Financial Group - Recent Testimonial

"I was attracted to RFG because the company is fairly aggressive when it comes to making a deal, and it has a good history of recent closes. The people at RFG are responsive and return my email or phone messages immediately. The originators go out of out of their way to answer not only my questions, but questions directly from my clients. Remington's LOI and due diligence policies are spelled right out - there is no confusion. If the client can meet the requirements and has a good deal planned, securing funding through RFG should be no problem."

- C. Hanley

Remington Financial Group, Inc. - Has Financing Options to Recapitalize the Capital Stack

Remington Financial Group has several financing programs for commercial real estate brokers working with property owners. One is the Distressed Owner Recapitalization (DOR) Program, which was inspired by Andy Bogdanoff, Chairman of Remington. Andy Bogdanoff has been in the financial services industry for 35 years and founded Remington Financial Group in 1993.

For owners and brokers unable to refinance loans, Remington can tie together our expert capital advisory services with access to hundreds of active private funding sources ready, willing, and able to recapitalize troubled commercial real estate assets across the capital stack.

An example recipient of funding arranged by Remington was an RV park that required property upgrades in order to reverse declining sales. Acting as financial adviser, Remington restructured the distressed owner's business plan in such a way that he could successfully tap into our extensive network of private lenders and investors. Instead of having to sell or declare bankruptcy, the owner secured a loan to stay in business.

Remington Financial Group - Has a Targeted Program to Help Distressed Owner / Operators

While much of the commentary in the commercial real estate industry today focuses on investor opportunities to acquire distressed debt, the Distressed Owner Recapitalization (DOR) Program by Remington Financial Group focuses on helping troubled owners and developers. The Capital Markets and Structured Finance groups at Remington are offering solutions every day to the ongoing liquidity crisis by providing access to more active funding sources across the capital stack. When better access to active funding sources is combined with expert advisory services, the DOR Program will positively impact owner recapitalization.

For experienced owners of existing income-producing properties looking to refinance, the program by Remington offers access to investors that will purchase the note from the bank at a discount. Owners will continue to make the original payments to the new investor and participate in the up side when values increase.

In those instances where the bank won't discount the note for the income-producing property, Remington has access to investors that will recapitalize it. They will provide the equity and/or mezzanine financing required to secure new senior debt of 50-65% LTV. Owners will participate in the upside once the market improves.

For experienced developers of partially completed projects that need capital to finish and operate the property, Remington has access to investors that will purchase the note from the bank at a discount, allowing the developer to complete the project and operate the property. The developer will continue to make the original payments to the new investor and participate in the upside when property values increase.

In those instances where the bank won't discount the note for partially completed projects, Remington has access to investors that will recapitalize the project through completion, providing the equity, mezzanine financing, and/or senior debt to payoff the existing construction loan. The developer participates in the upside once the market improves.

Remington Financial Group - Additional Advisory Services Available

Key to successfully closing even the most complex and challenging commercial financing transactions can be summarized as follows:

• Knowledge of the market.
• Experience in solving even the most problematic projects.
• Creativity in restructuring transactions.
• Ready access to hundreds of active capital sources.
• Commitment to pull it all together.

The advisory services at Remington Financial Group combine all five attributes needed for success in today's tight market, especially for those commercial projects unable to obtain debt, mezzanine, or equity capital from conventional sources.  Those companies most likely to benefit from our services include those:

• Currently restructuring.
• Emerging from bankruptcy.
• Needing recapitalization.
• Considering leveraged acquisitions.
• On a tight timeline to access capital.

At Remington, our knowledgeable and experienced team of experts works closely with clients to evaluate and creatively restructure transactions into new financing opportunities. Combining this insightful advisory service with the strong relationships we have developed with hundreds of active funding sources, clients of Remington gain the industry's best access to competitive commercial capital available today.

Remington Financial Group, Inc. - Has Access to Bridge Loans

The market-focused expertise of the financing professionals at Remington extends across the capital stack from equity to senior debt, to each type of financing in between. When fast and reliable short-term financing is required, one of the valuable options for commercial real estate owners and developers to consider is the bridge loan.

The bridge loan is a form of financing that "bridges" the gap between funds needed now and when longer-term financing becomes available. It can be a key component in an owner's long-term financing strategy, particularly for those faced with a here-and-now opportunity or other shorter-term situation such as improving or selling a property.

Real estate owners often use a bridge loan to purchase a second property before the sale of the first property closes. Then the proceeds from the sale are used to pay off the bridge loan. This illustrates the important "exit strategy" borrowers must have before an investor makes a bridge loan. In this example, the investor would need to see a signed sales agreement spelling out where, when, and how the bridge loan will be repaid.

Bridge financing almost always needs to be arranged and closed quickly. Such loans tend to be for 6 to 12 months with a possible 12-month extension. They are usually structured as simple interest only loans with no pre-payment penalty and all principal due in full at maturity. Risk to the investor is minimal since the loans are underwritten based on existing equity in the property and the exit strategy is defined.

Because of the owner's need for timeliness, banks and other institutional lenders are not usually effective when it comes to bridge loans. That's why the Capital Markets Group at Remington provides access to investors capable of making on-the-spot decisions. Included among them are hedge funds, private equity groups, mortgage pools and other sources of private capital.

About Remington Financial Group, Inc.

Since Remington Financial Group was founded in 1993, our financing professionals have handled billions of dollars in commercial lending transactions. Under the leadership of Andy Bogdanoff, an industry expert with more than 35 years experience in commercial real estate financing, Remington has earned a solid reputation for excellent service and dedicated client advocacy among commercial clients, particularly those unable to secure traditional bank financing.

Our ability to reconcile the interests of borrowers and lenders while structuring creative solutions in even the most challenging transactions is what differentiates Remington from other capital services companies. The market-focused financing expertise of Remington professionals stretches across the capital stack and includes virtually all types of commercial real estate and general business property.

Access is the key to client success at Remington.

· Access to the unmatched expertise of our Structured Finance Group

· Access to our highly regarded global network of private and public sources of capital

• Access to equity, mezzanine, and senior debt financing, as well as special-purpose bridge and construction loans in minimum loan amounts of $500,000 in the U.S. and $5 million internationally

Every day we work closely with owners, developers, and lenders, mixing and matching commercial lending options in creative ways that will secure the best possible financing consistent with client objectives and market conditions. Let's discuss your specific situation today.

About Remington Financial Group, Inc.

Remington Financial Group is a leading investment banking firm founded in 1993 by Andy Bogdanoff, an industry expert with over 35 years of experience in commercial real estate financing. Over the years, financing professionals at Remington have handled billions of dollars in commercial lending transactions, earning along the way an enviable reputation for exceptional service and tenacious client advocacy, especially when times are tough and bank credit is tight.

What differentiates Remington from others in the capital services industry is our ability to reconcile the interests of borrowers and lenders while structuring creative financing solutions even in the most challenging transactions. Our capital financing expertise extends across all types of general business and commercial real estate property including industrial, retail, multi-family, mixed-use, healthcare and hospitality.

When clients work with Remington they receive access to the unmatched market-focused expertise of our Structured Finance Group. Equally important is the access provided by the Remington Capital Markets Group to a highly regarded global network of private and public sources of capital. Together these provide business and real estate owners with access to alternative financing sources across the capital stack, including equity financing, mezzanine financing, and senior debt financing, as well as special-purpose bridge financing and construction financing in minimum loan amounts of $500,000 in the U.S. and $5 million internationally.

Each of the capital lending options available to borrowers has its own purpose, function, term, risk, cost, and maturity. We work closely with owners, developers, and lenders to creatively mix and match these commercial lending options in ways that will secure the best possible interest rates and terms consistent with client objectives and market conditions.

Remington Financial Group, Inc. - What is Senior Debt Financing

In general, debt financing involves raising money for business purposes in exchange for promised principal and interest payments. There are multiple types of debt financing available to commercial real estate and business owners from a variety lenders, including banks, pension funds, insurance companies, and other financial institutions. Each type of debt has its own function, terms, risk, cost and maturity. Our job at Remington is to work with both sides of a commercial transaction to creatively mix and match these options with the interests of all the parties in ways that will secure the best possible rates and terms consistent with client needs and market conditions.

In the typical capital structure for commercial real estate, senior debt typically accounts for 50-70% of the capital stack. By definition, senior debt is just that: senior to equity and all other forms of junior debt. Therefore senior debt stands first in line before all other creditors for interest and principal payments and, in the event of liquidation, the repayment of debt.

Most senior debt on commercial real estate is amortized over 15 to 40 years, with interest rates, either fixed or floating. Rates tend to be based on the quality of the collateral involved and the property's historic cash flow, with higher rates tied to the degree of risk involved. Many commercial real estate loans mature in five to ten years, resulting in a balloon payment at the end of the term.

Remington professionals are equally skilled at securing financing across the capital stack for virtually any business purpose, with or without the involvement of real estate, including loans for expansion, working capital, operating capital, and investment capital. By and large, asset-based business loans have lower interest rates than unsecured loans and may be tied to the particular asset being purchased or other assets of the borrower.

The financing experts at Remington Financial Group have the extensive market knowledge, broad expertise, technical resources, and lender relationships required to successfully navigate through the often complex maze of competing interests in the capital finance industry.

Remington Financial Group, Inc. - Types of Senior Debt Financing

Fixed Rate Loans: Fixed rate loans offer borrowers an unchanging rate of interest, with predictable payments for the life of the loan. Because of strong relationships with public and private sources of capital, many opportunities exist for the financing experts at Remington to negotiate with lenders on transaction terms for such loans, particularly interest rates, as well as maturity and prepayment penalties. All of which assures Remington clients of the best possible and lowest cost financing package available.

Floating Rate Loans: Floating rate loans are typically tied to the London Interbank Offered Rate (LIBOR) - plus some point spread over the base rate. Attractive to borrowers with a two to four year financing requirement, floating rate loans are adjusted periodically, have minimum or no prepayment penalties, and cost less than fix rate loans because of the risk of rising interest rates. This type of loan has been particularly popular of late because of the historically low interest rates experienced in recent years. Remington professionals are equally adept at assisting client in securing such short-term financing or employing it as an integral part of a longer-term overall financing strategy.

Construction Loans: Commercial construction loans typically are short-term loans used to finance the cost of building new warehouses, industrial buildings, retail centers, apartment complexes or other properties destined to be sold or rented to others or operated by the owners. These loans tend to be varied, depending on the project, construction time, and borrower's experience. They are meant to be paid off when construction is completed and a certificate of occupancy issued. Borrowers usually require another mortgage to pay off the construction loan when it comes due. Thus the overall process may entail two loan applications with their associated fees and closings - a potentially complex and time-consuming process that the experienced financing professionals at Remington can coordinate, facilitate and expedite.

Bridge Loans: Bridge loans are short-term loans for owners of commercial real estate property that help the borrower "bridge" a critical funding gap while arranging for a more permanent form of financing. Bridge loans tend to be time-sensitive and meant to be funded and paid back rather quickly. Consequently, traditional capital sources are usually not in the mix of potential lenders; they usually take too long to complete transactions. Most if not all bridge loans are made by private sources of capital such as hedge funds, private equity groups, mortgage pools, and other non-bank lenders, such as the wide range of capital sources with whom the Capital Markets Group of Remington has had long and established working relationships.