Hey everyone,
I know I don’t post on here a lot, but I figured someone could point me in the right direction. I’m brokering a deal using a very, very valuable coin collection. I can’t seem to find anyone or any financial institution that will lend on coins. All input is welcome.
[quote]citmarine wrote:
Hey everyone,
I know I don’t post on here a lot, but I figured someone could point me in the right direction. I’m brokering a deal using a very, very valuable coin collection. I can’t seem to find anyone or any financial institution that will lend on coins. All input is welcome.[/quote]
You’re not going to find any traditional lending institution that’s going to lend on coins…you’re best bet might be to find a private equity fund that would be willing to do the deal, but that all depends on how much the coins are worth. I can’t imagine a private equity shop doing the deal for less than $5MM, and then they would need some iron-clad way to secure the collateral (I’m assuming the coins will be the collateral, or are the coins collateral for some other loan?).
All in all, it’s going to be difficult to find someone willing to do the deal at terms that would make it worthwhile.
Just for shitz and giggles, how about throwing a few details out…might be interesting to see.
Yea, we have been approaching hard money from the get-go. Coins are appraised at $102M. We are looking for a 20% LTV at most. Speed bumps we are hitting are new appraisals being needed (even though the original are less than a year old), and, of course, the upfront fee problem.
[quote]citmarine wrote:
Yea, we have been approaching hard money from the get-go. Coins are appraised at $102M. We are looking for a 20% LTV at most. Speed bumps we are hitting are new appraisals being needed (even though the original are less than a year old), and, of course, the upfront fee problem. [/quote]
Just so I’m clear, you have $80M in cash or financing already lined up and you’re looking for $20M so you can consumate the deal…
Well, I can understand why additional appraisals would be needed, most appraisals are for insurance purposes. I would imagine you could shop parts of the collection around and get a few quotes, that would be much better than an appraisal. How would the lender secure the collateral, assuming the coins are the collateral, or would this be a nonrecourse loan?
Frankly, this is either a joke fit for a Nigerian prince or something out of Three Kings, but I’m bored and am a partner in a private capital firm, so I’d love to hear some more details…
Pm with more info has been sent