Financial Enhancements

MFC has extensive experience of insurance enhancements. This broad base of knowledge allows MFC to structure transactions to meet NAIC (National Association of Insurance Commissioners) guidelines, accommodate rating agency requirements, meet FASB (Financial Accounting Standards Board) operating lease guidelines and ensure the highest market acceptability of structured transactions to the most markets.

For more than 25 years, MFC professionals have used numerous types of insurance products to enhance transactions. These insurance products have enabled MFC to increase loan-to-value funding; lower debt service and/or lease payments; mitigate construction risk to achieve a forward funding of the construction and term loan in a single funding; provide passive equity to the lessor as a low-cost alternative to mezzanine debt; or provide more protection to the investor, thereby motivating investors to consider transactions they may not otherwise approve.

MFC has worked closely with insurance providers and has manuscripted surety bonds, insurance policies, undertakings and financial guarantees. Very few firms possess the industry knowledge, contacts and communication skills required to successfully structure an insurance enhanced transaction and facilitate its funding by a bank or insurance company lender.