CRBA MEMBERS: Here are some examples

1. $4.2MM deal
a. P+1.50%
b. Acquisition of 6 restaurant locations ( some were partner buyouts )
c. Seller note ( approx. $500M ) on standby incorporated into structure
d. Buyer’s personal homes and investment properties were pledged as collateral due to extreme collateral shortfall.
e. DAR ( dollars at risk for HNB ) was in excess of >$600M.
f. Very, very strong guarantor & borrower.
g. Locations are neighborhood restaurant & bar based in Indiana. Their menu featuring Wings, Burgers, Tenderloins, and Fish Tacos. Their full bar is stocked with 14 draft flavors, liquor, and wine with daily drink specials. They have several 92″ projectors and many 50″ plasmas. They also offer a spacious patio area. The restaurant is more of the sports-themed pub style.

2. $250M deal
a. Business acquisition of restaurant – no CRE.
b. 6 mos I/O – 114 mo term after i/o.
c. P+2.75%
d. Collateral coverage < 1:1 due to buyer did not have any
e. UW comments:
Strong management and industry knowledge.
Long-standing business in the industry.
Strong depository relationship with bank

3. $1.4MM term loan with $50M LOC
a. Expansion loan for 3rd location with leasehold improvements
b. 6 mo i/o / amort over remaining 114 mos after construction
c. Backround on buyer:
Executive chef and an avid home brewer with 20+ years of experience in the restaurant industry. He was previously Executive Chef for XXXX
Prior to that, he worked for XXXX for 9 years in 3 different locations as the Executive Chef and at times in the General Manager role as well. He has proven experience in reducing food costs, gaining efficiencies and training his people to become resourceful and hardworking. At XXX, he is in charge of the front of the restaurant and kitchen operations. His wife, was previously a financial analyst with Abercrombie & Fitch for 7 years gaining experience in managing the capital budget as well as financial forecasting. At XXX, his wife manages the financial side of the business. In addition, the operations are supported by a management staff. Overall, management ability is demonstrated at an acceptable level of competency.
d. Life insurance was required for $1MM due to unplanned succession in business.