Golf Capital, a leader in the first-lien term debt marketplace in Puerto Rico, has announced the acquisition of the Golub Capital Unitranche. The acquisition is the second transaction between the two companies in less than three months. In November, the company acquired its partner, the San Juan Golf and Country Club. During the acquisition, the company struck a deal with financially impaired businesses to convert their second and third mortgages into first-lien notes. The financial advisors for both companies are expected to finalize the deal soon.
The acquisition of the Golub Capital Unitranche marks the completion of the first transaction of a two-year term. The acquisition completes the first phase of restructuring the debt owed by the Company and its associates. The second phase of restructuring involves reducing the rate of interest and extending terms, which are typical for commercial mortgage loans. This marks the completion of the first steps of credit restructuring, which is focused on reducing the debt of the Company and its associated entities.
The Company’s two principal holding companies
The total purchase price of the assets included in the transaction is approximately $3.5 million. The majority of the funds required for the acquisition were obtained through cash advances. Approximately $1.5 million came from bank overdrafts, as well as various third-party lenders.
The management team for the Company is comprised of seasoned entrepreneurs and financial advisors. The acquisition was completed through the services of a leading financial advisor with extensive experience in working with small businesses throughout the United States. The primary purpose of the investment banking professional was to assist in obtaining approval for a first-lien term loan and to successfully complete the second-lien term. The primary goal was to ensure the successful development of the Golf Course Resorts located in Colorado.
Mr. Timothy Coughlin
Coughlin has over 30 years experience as a venture capital and banking analyst. He was previously the Chief Financial Officer of Greenwoods Associates, LCC, where he handled the company’s balance sheet and working capital management. Prior to that position, Mr. Coughlin was an executive vice president of Global Services, which provided financial advisory and capital planning services to several private equity groups. Mr. Coughlin has also served as a member of the boards of directors for Suncor, Alcoa Chemical, Enterprise Global, and Silverton, Inc.
Mr. Coughlin has negotiated deals for more than a dozen commercial real estate borrowers, most of which received financing in the form of term loans with low interest rates. These loans were used to pay down the credit lines on Golf Course Resorts at discounted rates while maintaining ownership of the properties. By negotiating with the current owner of the properties, he was able to get the payments down to an affordable level while maintaining ownership. The current financial structure of the properties requires the owners to pay a regular fee to the Company. Because the Company is the borrower on these loans, they are able to avoid having the debt secured against their personal assets. This provides an opportunity for new businesses to obtain loans without having to provide personal guarantees.