Project Lima

LOAN REPAID

Specialty electrical contractor has executed contract with a Fortune 500 Engineering and Project Management firm to rebuild Puerto Rico’s electrical grid. The Company is raising $3,250,000 of senior debt to fund working capital.


Total Return: 16.0%+, Floating (net)

$3,250,000  Total Availability

 

 

  • Total Loan Size: $3,250,000
  • Loan Priority: Senior Secured
  • Cash Interest Rate (net, annualized): 11.26%, floating
  • Term Length: 1 year
  • Loan Amortization: Interest only in Year 1, with a balloon payment at maturity

COMPANY OVERVIEW

CrowdOut is inviting sophisticated investors to participate in a senior secured term loan facility to a specialty electric contractor (“Lima” or the “Company”) that will be instrumental in the reconstruction of Puerto Rico’s electrical grid following the damage from Hurricane Maria. The U.S. Army Corps of Engineers has granted Fluor Corporation a $831.0 million contract to restore the power grid in Puerto Rico, and Fluor is subcontracting up to $43.2 million to Lima. The Company, founded in 1984, is a service disabled veteran-status electrical contractor with significant disaster recovery experience, having restored power grids in several Caribbean islands following major hurricanes.

CrowdOut is seeking investors to join us in providing a $3.25 million term loan. The term loan will have a floating monthly interest rate of 11.26% (net), as well as an exit fee due at loan repayment or maturity, which will result in an IRR greater than 30% if repaid at current contract end date and 17% if held to maturity. The use of proceeds is initial working capital for the Company; the contracting work will commence in early January and will continue through April 2018 or until the work under the subcontract is completed. Lima will invoice Fluor Corporation bi-weekly and on net 30 payment terms. CrowdOut will have a personal guarantee from the Company’s founder, first lien on all assets (including 2:1 Accounts Receivable), as well as a blocked control account agreement where CrowdOut has full authority on cash withdrawal approvals. The Company has over 30 years of experience in large, multi-faceted contracting with experience in Hurricanes Katrina, Hugo and Gilbert as well as experience in completing the nationwide airport security upgrade following September 11th.

NON-DISCLOSURE FORM: To receive more information, please complete this Non-Disclosure Form and we will reach out to you directly.

THIS LOAN IS SUBJECT TO FINAL CONFIRMATORY DILIGENCE AND DOCUMENTATION.

INVESTMENT HIGHLIGHTS

    • Secured by Underlying Contract with Fortune 500 Engineering and Construction Firm
    • Short Investment Horizon with Strong Returns
    • Seasoned Management Team with Significant Experience in Disaster Recovery

Total New Capital: $3,250,000 (Senior Term Debt provided by CrowdOut)

Offline Payment Instructions:

CrowdOut will securely initiate bank transfers via ACH from your account. Monthly interest and principal will be remitted to your account directly.

NON-DISCLOSURE FORM: To receive more information, please complete this Non-Disclosure Form and we will reach out to you directly.

The forward-looking statements included on this website, INCLUDING any PROJECTIONS SET FORTH herein, are not historical facts or guarantees of performance, but rather are based upon the Company’s expectations, estimates and projections.  Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “hopes,” “estimates,” “projects,” “forecasts,” “potential” and similar expressions and variations of these expressions, or future or conditional words such as “will,” “would,” “should,” “could,” or “may,” are intended to identify forward-looking statements.  Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond the control of the Company, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.  These risks and uncertainties include those described below in the section entitled “RISK FACTORS AND CERTAIN CONFLICTS OF INTEREST.” NO ASSURANCE CAN BE GIVEN THAT YOUR INVESTMENT OBJECTIVES WILL BE ACHIEVED.  The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are cautioned not to place undue reliance on forward-looking statements.