$12 Million Cash-Out Refinance Business Loan
|ST PETERSBURG, FL – Bison Financial Group, a real estate advisory firm based here, announces the closing and funding of a cash-out refinance loan secured by a dirt mine (a.k.a. borrow pit) in suburban Orlando, FL. The loan is secured by 1,100 m.o.l. acres of land and heavy construction equipment needed to load 400-800 dump trucks each working day. The fill material is utilized in road construction and infrastructure projects in the booming Greater Orlando MSA. Bison’s client is an out-of-state private equity firm that operates over a dozen diverse enterprises.
The loan was placed with a regional bank and has a 7-year fixed rate of 5.1% with payments made on a 20-year amortization schedule. According to David Repka, Co-Founder of Bison, “Our clients purchased the business and assembled the supporting real estate in a number of transactions over the last few years. The loans that were retired had suffocating 5 or 7 year amortization schedules. Free cash flow to our clients increases dramatically going to a 20 year payment schedule. As part of the negotiations, we clarified that the free cash flow can be distributed to the principals and utilized as they see fit to grow and expand their operations.”
Fun fact: Bison was introduced to the opportunity by a banker friend that attended middle school, high school and college with Bison co-founder, David Repka. While they were in the same class growing up they had different interests and friend groups. It wasn’t until re-connecting at their 15-year college reunion where they realized they had so much in common and became good friends.
The principals of Bison Financial Group arrange debt and equity on commercial and investment real estate nationwide. Bison’s clients are entrepreneurially minded investors that constantly need access to creative, unconventional sources of capital. Since 1994 the principals of Bison have closed $2+ billion in transactions including $193 million since the heart of the global pandemic in June 2020 when many lenders pressed the pause button or closed down completely.