Strategic Expansion for European Gaming and Hotel Consortium

Objective: Acquire suitable collateral and secure a lender to provide loan funds totaling €36 million.

Facility Secured: Collaboration with European Provider Group and Dubai Lender

• Collateral Transfer Facility: Secured a substantial €36 million
• Annual Contract Fee: Set at 5.35%
• Term: Initial 12 months, renewable up to an extended 7 years
• Deposit against Contract Fee: Established at €415,000

Client Profile: A European-owned gaming and hotel consortium with a successful track record, aiming to expand operations in Croatia, Macedonia, and Montenegro.

Challenges: Existing physical assets committed for mortgage security, requiring additional collateral to secure additional borrowings.

Redeure’s Solution:

1. Strategic Financing: Secured third-party investment and structured credit line using a Collateral Transfer Facility.
2. Competitive Terms: Leveraged the sustainable revenue stream from existing facilities to negotiate favorable terms.
3. Extended Facility Term: Negotiated a long facility term of up to 7 years to accommodate the client’s potential longer-term needs.

Results:

• Successfully facilitated funding requirements for expansion.
• Arranged a competitive exit strategy for future funding against tangible assets.
• Strengthened the client’s financial position for sustained growth.

This case exemplifies how Redeure’s expertise in collateral transfer and strategic financing played a pivotal role in supporting the client’s expansion goals while ensuring flexibility and sustainability in their financial structure.