GrowthDebt is a new type of growth financing.. a blend between traditional bank debt and venture capital. GrowthDebt offers a flexible structure with variable payments that lets companies grow without having to dilute ownership.
Growth debt helps companies grow without diluting equity ownership.
 

A single note issued jointly by Arctaris and a partner bank with a competitive, blended rate to the borrower and a shared lien, with Arctaris taking the “last out” position.

BENEFITS TO PARTNER BANK:

  • Provides an extra layer of credit support to banks to meet credit policy guidelines
  • Simplified execution of loan package vs. traditional senior/subordinated structure increases probability and speed of closing while reducing costs
  • Provides a cash collateral pledge and support for senior debt facility

EXAMPLES OF ARCTARIS LOAN PARTICIPATION PROGRAM:

Cash Collateral Support

  • Bank approved $10M loan to client but would like a collateral enhancement
  • Arctaris provides $1.5M (15% of loan) to the Bank’s deposit account as collateral to support the $10M loan
  • Client pays monthly P&I to Bank at a blended interest rate of 4.35% = 3% x $8.5M (Bank portion) + 12% x $1.5M (Arctaris portion); Bank then pays Arctaris its portion of the P&I

Loan Participation Example

  • Client requests $10M loan, but Bank is comfortable with only $8.5M of exposure
  • Arctaris purchases the Bank’s undesired $1.5M exposure with “last money out”, jointly issuing a single note to Client at a blended interest rate, similar to the Cash Collateral Support Example above