Hospitality Company – $11MM – Done Deal

The Customer

  • A hospitality management group with operations across luxury hotels, resorts, and commercial spaces in the Southeast.
  • Required the acquisition of a specialized private aircraft to support executive travel and operations across multiple high-end properties.
  • The company’s cooperative ownership structure introduced additional complexity to its financial reporting and asset allocation processes.

Challenge

  • The group was in the midst of transitioning from one aircraft to another, which created timing constraints and required close coordination with the seller and lender.

  • The asset in question was a high-value aircraft that was highly specialized, making underwriting and resale considerations more complex.

  • Due to the creation of a new entity for the purchase, there was no existing financial track record to underwrite, creating an additional hurdle for traditional lenders.

  • The cooperative ownership model introduced unique risk factors and governance complexities that made many traditional financiers hesitant to proceed.

Done Deal

  • FNC approved $11 million in financing, working closely with the company as they sourced and selected the aircraft best suited to their operational needs.

  • Served as an extension of the company’s senior lender, supplementing the capital structure and bringing transaction-specific expertise to the table.

  • Structured the financing with progress payments, enabling the company to align capital deployment with its operational ramp-up and transition schedule.

  • Provided a flexible lease arrangement that supported the group’s gradual integration of the new aircraft while preserving liquidity across its broader business operations.

  • Despite structural complexities, the transaction closed smoothly and positioned the management team to better support their growing hospitality portfolio.

 

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