Quote:
Originally Posted by Willi Plett
Lenders secure loans against hard assets owned by the business or individual. They rarely lend against business value. They can take hard asset collateral - real estate, machinery and sell it. Can’t do that easily with a business, especially one with special sale restrictions like an NHL team. What’s more, the major owner is non-resident making it more challenging.
Private debt financing is an option but would be very costly.
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Lenders would take the new building as collateral and the corporate guarantee of the Flames as an owner operator of the facility. If that is insufficient they would ask for additional guarantees or cash from whatever assets or entities the Borrower and Lender might agree is appropriate.