Arriba Capital (Arriba) successfully closed a $1,168,000 loan for one of the nation’s largest indoor paintball facility, located in Midvale, UT. The new loan, secured by a 24,000 SF commercial property, was used to refinance the existing private debt; buyout a previous business partner; and pay off existing equipment leases.
Challenge: Due to the various financing activities and their historically high cost of capital, the sponsorship had little to no liquidity to continue funding operations.
Solution: Arriba Capital was able to structure a long-term financing solution that substituted the existing short-term expensive debt for a lower cost of capital that amortized over 25 year. By restructuring the capital stack, Arriba was able to reduce the owner’s monthly payment obligation by 80%; thus freeing up necessary cash-flow to fund operations. The loan was secured at Prime + 1.75%, with a 25 year term, and leveraged to 90% of the real estate value.