DARIEN, Conn., July 15, 2020
Old Hill provided a $16.6 million senior secured term loan to a large trader and distributor of petroleum products with business in the Middle East, Africa, and Asia. The loan was secured by a senior mortgage on a very large crude carrier (VLCC), a supertanker with approximately 2 million barrels of capacity. The loan was also supported by the assignment of a time charter equal to the loan term.
“We operate in a segment of the lending market that requires specialized knowledge and that is being avoided by large traditional banks due to regulatory constraints. The firm’s experience in the asset-based lending (ABL) sector allowed us to execute on a transaction that offered a flexible financing solution for the borrower that is not available from traditional lenders. We worked very closely with the borrower to craft a custom transaction, secured by strong collateral, that aligned the interests of all involved,” said Sam Adams, Portfolio Manager at Old Hill. “We liked this deal in particular because of the employment of the vessel for floating storage for operations not for the contango trade, and because of the favorable ratio of loan-to-scrap value during the term,” Adams added.
Sam Adams is an experienced asset-based lender with a background in ABL fund formation and management, and as a corporate lawyer. He originates, structures, documents, and manages deals across industries and geographies with expertise in trade, shipping, machinery and equipment, and entertainment finance. He holds a JD from Washington and Lee University School of Law and a BA from Kenyon College.
Historically Old Hill provides asset-based lending solutions for borrowers seeking $5 to $35 million in financing. The firm structures senior secured debt in the form of term, draw down, and revolving-to-term facilities of up to five 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., founded by John Howe, 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