Lending Query
A wealthy Chinese national, with a passion for luxury yachting and maritime exploration, approached Silver Oak Capital seeking assistance in acquiring a 50-meter Heesen yacht. They required a long-term financing solution at 60% loan to value (LTV).
Client Circumstances
The borrower, a prominent figure in China’s elite circles, had a strong affinity for luxury living and oceanic adventures. With significant financial resources and a history of luxury acquisitions, the borrower inspired confidence in potential lenders. They aimed to procure the Heesen yacht promptly and sought immediate access to finance.
Problems to Solve
Primary challenges in this case included addressing potential issues related to yacht
valuation, maintenance costs, and regulatory compliance for maritime operations. Additionally, ensuring the suitability of the yacht for the borrower’s specific preferences and travel desires posed a unique challenge requiring specialized knowledge of the luxury yachting industry.
Solution Provided
We presented a tailored financing solution from a reputable maritime lender, designed to meet the client’s needs:
- Loan Amount: $14 million USD
- Loan to Value: 60%
- Interest Rate: 4.25% + Sonia
- Term: 10 years
- Repayment Structure: Amortization over 20 years
- Lender Fee: 2.75% This solution not only addressed the client’s unique
circumstances but also provided provisions for yacht valuation, maintenance considerations, and regulatory compliance, ensuring a seamless and financially
iable acquisition of the 50-meter Heesen.