PARTICIPATIONS
PRO-RATA PARTICIPATIONS
- Bank participates up to 50% in a SPECTRUM loan on a pari passu risk basis.
- The Bank’s desired rate is blended with SPECTRUM’s rate, reducing the overall rate to the borrower.
- Participations are settled monthly with interest being paid at that time.
- Bank receives information from SPECTRUM about the borrower to keep the Bank completely informed on the status of the credit.
GUARANTEED PARTICIPATION
- Bank can participate up to 15% with SPECTRUM in a non-bankable credit.
- Bank maintains a first lien on all assets of the borrower, and additionally has SPECTRUM’s absolute corporate guarantee.
- Please contact SPECTRUM for additional Information.
CASH SECURED GUARANTEED PARTICIPATION
- Bank can participate up to 15% with SPECTRUM in a non-bankable credit.
- Bank maintains a first lien on all assets of the borrower, and additionally has SPECTRUM’s absolute corporate guarantee.
- SPECTRUM backs up this guarantee with cash on deposit in your Bank.
- Please contact SPECTRUM for additional information
Advantages to Bank
- Ability to work with a borrower that requires the additional monitoring and discipline provided by SPECTRUM’s team of professional collateral lenders.
- SPECTRUM’s long history of successful collateral lending with minimal loan losses.
- Bank can take over the credit prior to the maturity date with no borrower termination fees.
- Bank maintains the checking accounts and other banking services of the borrower.
Advantages to Borrower
- Time to complete their turnaround or restructure.
- Reduced overall rate due to blending of the bank and SPECTRUM rates (Pro-Rata Participation only).
- Ability to graduate back to Bank with no early termination fees for the borrower.