- Yacht - €11,000,000
- Pre-delivery finance - €4,500,000
- Post-delivery finance - €5,500,000
- Pre-delivery term - 15 months
- Post-delivery term – 60 months
- Rate – 4.25% + Euribor
- Fee – 1.45%
This case involved putting together a funding package of €10m to enable the construction and re-finance of a super-yacht out of a top-end shipyard in Italy.
The transaction had many moving parts with; an Asian lender, Saudi UBO, UAE family office, BVI SPV, Italian shipyard, and the yacht being registered in Jersey. There were many people involved across different jurisdictions, legal systems and time zones.
The pre-delivery construction finance was for €4.5m and the post-delivery mortgage finance was for €5.5m.
The mortgage was agreed over a term of 60 months, with half of the capital being repaid across that term. The remaining capital is repaid in a balloon payment on the repayment date.
The UBO for this transaction was a prominent business person from Saudi Arabia. Whilst their income and wealth was vast, it was not consistent. We had to work very closely with the family office to identify the portfolio companies that not only provided significant wealth, but were also easy to understand and report on to the lender’s credit committee.
Luxury assets are often held by the super wealthy, particularly those from the Middle East, who spend much of the summer in Europe. This case evidences our ability to collaborate across countries and cultures in order to secure best the results for our clients.