DARIEN, Conn., Feb. 24, 2021 — Old Hill provided $5.1 million in the form of a senior secured drawdown facility to a company that acquires and leases standard 40’ shipping containers. Its lessees include shippers with trade routes in Asia and the Middle East. Leasing and container management services are provided to the borrower by managers in Hong Kong and Singapore. Security for the facility consists of the new containers, the leases, receivables from the leases, a stock pledge of the borrower, and guarantees.
“We believe that the global shortage of containers presents an opportune time to finance owners and lessors of these assets. Lease rates are at historic highs and container owners are able to lock-in these rates under long-term leases. We worked closely with the borrower and its parent company, which has extensive experience in container acquisition and leasing, to craft a transaction that capitalized on the opportunity while building-in collateral and cashflow safeguards to mitigate risk. We continue to be interested in this sector and in transport finance generally.” said Sam Adams, Portfolio Manager at Old Hill.
Old Hill provides asset-based lending solutions for borrowers seeking $5 to $50 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-to-term facilities of up to four years and loan-to-value ratios in the range of 35% to 85%. Collateral types include pools of loans or leases (specialty finance), receivables, inventory, machinery, and equipment.
Old Hill Partners Inc. is an alternative asset manager focused on asset-based lending transactions with small- and medium-sized businesses. As an SEC-registered investment advisor, we operate at the crossroads of investors seeking attractive risk-adjusted yields and emerging companies seeking capital for expansion, acquisitions, or growth.
Old Hill Partners Inc.
1120 Boston Post Road
Darien, Connecticut 06820
Phone: 203 656 3004