Arc & Co. has secured a €3,375,000 loan for a client purchasing a superyacht based in France—despite several initial hurdles.
The yacht was built by one of the leading superyacht builders in the world, Alloy Yachts, and has been kept in pristine condition with an impeccable maintenance record since its delivery nearly 20 years ago.
The age of the vessel proved tricky for most lenders, as well as the fact that the yacht’s shipyard has recently ceased operating. However, Alloy Yachts still provide maintenance and inspections for their historical yachts, giving comfort to the lender regarding ongoing care.
Additionally, and unusually for a yacht of this age, the valuation came in above the purchase price due to its near perfect condition, which enabled the lender to offer a higher day one facility than originally agreed.
The client’s complex personal and corporate structures presented challenges, too, and discounted the more vanilla finance options. However, the Arc & Co. team expertly and diligently navigated the borrower’s unique profile with the lender to ensure that all parties were aligned, which was possible due to our extensive experience and understanding in working with UHNW clients and their wealth preservation requirements.
Having overcome these hurdles, the deal concluded in record time: it took just six weeks from receipt of initial terms to final drawdown—an impressive feat given the holiday schedules of the various parties involved.
The 48% LTV facility was negotiated at a rate of 4.4% over Euribor, for a five-year term with a 50% balloon payment.
Andrew Robinson, Arc & Co. CEO commented:
“This deal was challenging both in terms of communication and the unique aspects of the asset itself, but through expert communication, all parties have come to a comfortable and successful solution.
“The client was so happy and grateful for the quality of service received by Arc & Co. that they have already re-engaged us to help them finance a large social housing scheme in the UK.”
Arc & Co. has a successful track record in securing finance for marine and aviation assets, leveraging leading in-house expertise with a unrivalled network of providers that cover all client circumstances.