Non Recourse Debt

MFC can discount lease receivables payable to the property owner. Utilizing its pool of institutional investors, MFC can provide very competitive terms. The loan amount, term, amortization, and interest rate are dependent upon the credit strength of the tenant and the integrity of the lease:

• Bondable Lease -- Proceeds may exceed 100% of appraised value and debt service coverage may be as low as 1.00:1.00. With a bondable lease, the user is responsible for utilities, maintenance, taxes, incurance, casualty, condemnation, and environmental. The bondable lease also minimizes real estate underwriting limitations and associated expenses.
• Credit Tenant Lease -- Proceeds may be up to 100% of appraised value and debt service coverage may be as low as 1.05:1.00. With a credit tenant lease, the user is responsible for utilities, maintenance, taxes and insurance. The user has less liability with regard to condemnation, casualty, and environmental than a bondable lease.
• Triple Net Lease -- Proceeds and debt service coverage will be contingent upon the strength of the lease. The user is responsible for utilities, maintenance, taxes and insurance. The owner may be responsible for roof and structure. MFC can often enhance leases with reserves or insurance to comply with guidelines as a credit tenant lease whereby loan amount may approach 100% of appraised value and debt service coverage may be as low as 1.05:1.00.

MFC can provide an annual line of credit which may be drawn upon throughout the year. Each draw will simply be a takedown under the line based upon new receivables that the property owner receives. This provides an efficient means to insure the client has funding availability when it is needed. Additionally, legal expense and documentation effort are diminished because each takedown refers to a master obligation but is treated as a separate obligation, eliminating the need to completely redocument each takedown.

MFC can also finance leased equipment used in connection with real estate.

MFC can provide non recourse mortgage financing to the property owner/user based upon the value of the property.

Portfolio Financing

MFC may finance non recourse or purchase portfolios of bondable leases, credit tenant leases, triple net leases, mortgages or other forms of long term receivables. With MFC's assistance, these obligations may be rated to achieve bond status for the purpose of providing the largest advance to the owner and minimizing owner equity requirements.

MFC may provide credit enhancements and/or guarantees to single asset property or portfolios in order to provide the owner with maximum proceeds. MFC utilizes numerous forms of enhancements to upgrade the user's credit or upgrade the strength of the lease obligation. These structures may decrease the owner's interest rate, increase loan proceeds or make the transaction more market acceptable. Enhancements may take the form of lease rental guarantees, property residual value guarantees, over collateralization, reserves established to mitigate owner obligations, and other vehicles structured by MFC to enable the lease to qualify as a bond.