Overseas, MEECORP underwrites loans ranging in size from $20 million and up, backed by one or more of the following:
- Hard currency [US dollars, DM, EURO, GBP, JPY, etc] and/or existing,
- Non-income real estate assets of defined value
- Financial securities, in most countries of the Western world.
Typically, loan amounts range from 50% to 70% of the properties’ value supported by strong cash flow and/or credit tenants, with terms of 1 to 5 years, paying interest only for the term of the loan. The minimum Debt Service Coverage (net Cash Flow divided by Debt Service “DSCR”) should range between 1.05X to 2.0X, depending on the type of property and credit enhancements.
In cases where hard currency cash flow cannot be established, Meecorp will accept an Investment Grade enhancement in the form of a Surety Bond or a Standby Letter of Credit equal to the Net Operating Income of the property, in US dollars or other hard currency. The enhancement can be issued for a period of one year, automatically renewable, for the duration of the Loan Term. In this scenario, Meecorp could lend up to 98% of the present net value with a minimum DSCR of 1.05X. Terms would be self-liquidating over 5 to 20 years.
See Preliminary Loan Information Package for submission information.
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