DIAMOND DECISIONS, INC: (DDI),

OWNER AND OPERATOR OF PRIVACY WEAR COLLECTION

Background: DIAMOND DECISIONS, INC., owner and operator of PRIVACYWEAR COLLECTION had the opportunity to take advantage of a national promotion, which was led and marketed by one of the country’s leading retailers. However, due to the double-digit growth the company had experienced over the past twelve months, their existing credit facility was fully extended and could not be expanded in time to capitalize on the opportunity. The client needed to secure a preferred equity and or mezzanine credit facility, which would not violate their existing loan covenants, which created a very unique situation, which CCP had to work within.

Problem: The transaction was time sensitive and had to have a firm commitment by year-end 09.

Strategy: Working quickly with one of its private investors, CCP arranged the commitment within two weeks of being engaged by the client, which allowed the sponsor the option to take advantage of a time sensitive opportunity.

 Result: CCP arranged a $4.5 million preferred equity, convertible to mezzanine, financing commitment for DDI.

PASADENA APARTMENTS:

Background: The investment unit originated a 2.0. million senior credit facility in order to facilitate the purchase of a Detroit apartment tower. The acquisition was a distress CMBS purchase that had a hard closing date, which if not met would cause the loss of the sponsor’s hard deposit and the property would be auctioned as part of a pool of non-performing assets.

Problem: Due to liquidly constraints caused by closing deadlines the sponsor needed a 100% loan to cost transaction.

Strategy: CCP evaluated the closing deadlines as well as the financial requirements to facilitate a closing by the required date. We chose to structure the transaction leveraging other liquid and non-liquid assets within the sponsor Portfolio to fill the equity requirements of the Fund. CCP coordinated internal due diligence, internal, external, and sponsors legal, as well as title to facilitate the closing. Although this approach posed legal cost exposure to the sponsor it was the

best means to achieve the desired end results.

Result: The loan was funded in less than thirty days start to finish.

TANGLEWOOD:

Background: The investment unit originated an $18 million senior loan secured by a mortgage on 500 acres of entitled commercial land partially developed with a strip mall anchored by a Super Walmart located in Elizabeth City, NC and by a personal guaranty from the developer. This investment was funded in conjunction with D.E. Shaw, para pursue on a 90/10 split with Fund I. The investment unit originated an $7 million senior loan secured by a mortgage on 220 acres of entitled commercial land located across from the above referenced property and secured further by a senior mortgage on the sponsors personal residence, as well as a senior mortgage on two water front lots and a personal guaranty from the developer and his wife. This investment was funded as a clubbed transaction in conjunction with a MI entertainment & beer distribution group and further with a MI wine distributor.  

Problem: A maturity default occurred.

Strategy: The investment unit presented several creative forbearance proposals to the borrower that would have extended the loan’s maturity. When those negotiations stalled, the investment unit began to enforce its rights and remedies under the mortgage and the personal guaranty pursuant to an aggressive legal strategy, creating significant pressure on the borrower.

Result: The loan was repaid in full, including default interest and penalties resulting a 33% ROI on the initial loan and a 31% ROI on the second loan.

MI RV Park:

Background: The investment unit originated a 3.8 million senior loan secured by a mortgage on 102 acres, 395 RV sites and 35 cabins and by personal guaranty from the developer. The credit facility was used for the final acquisition and final stage horizontal development of the park.

Problem: Due to setbacks caused by another lender who could not fund the project in full it was imperative to complete the transaction within a short timeframe. The transaction was funded in less than two weeks start to finish.

Strategy: CCP evaluated the closing deadlines as well as the construction requirements to deliver the project on time for the grand opening. We chose to conduct due diligence and concurrently start the legal documentation necessary to achieve the client’s end goal. CCP coordinated internal due diligence, internal, external, and sponsors legal, as well as title to facilitate the closing. Although this approach posed underwriting cost exposure to the sponsor it was the best means to achieve the desired end results.

Result: The loan was repaid in full, on time resulting a ROI north of 20% ROI.

BROADWAY PARTNERS:

Background: The investment unit provided approximately $234 million of bridge equity to Broadway Partners in order to facilitate the purchase of two New York City office towers.

Problem: The investment unit expected to be syndicated out of its equity position within nine months of the closing of the transaction. When market conditions made this impossible, the investment unit commenced negotiations to restructure the deal to make it more appropriate for the risk that it was taking as a longer-term equity holder.

Strategy: The investment unit used its contractual right to force a sale of both assets plus certain contractual claims it had with respect to the Broadway Partners fund manager as leverage to improve its economic and structural positions in the two assets.

Result: The investment unit achieved a restructuring that (1) put it in a senior position to Broadway Partners on the asset that needs more time to recover its value, (2) modified its interest in the other asset into a security that would be saleable in the secondary market, and (3) gave it a disproportionate economic share of any proceeds from a sale of such other asset.

NE North Carolina - $23,800,000

Reposition, acquisition of a key land parcel, and infrastructure loan for large master planned commercial development. A major retail development servicing a large trade area anchored by a Super WalMart was in need of complete restructuring of their capital stack in addition to a credit line for horizontal development. JADDA was able to complete the transaction within three weeks time with the help of a motivated client.

York, PA - $1,750,000

Refinance of large farm parcel under contract for residential development to facilitate payment of debt in unrelated bankruptcy reorganization. Additional security pledged in SC. Payment and terms structured to applicant’s ability and cash flow. Loan arranged quickly to Avoid loss of essential equipment And the corresponding detrimental impact on revenue and operations.