presented by October Spain
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Cassà de la Selva, Spain
Created in 2000, Alameda-Torrent, SL is active in the sawmilling and planing of wood sector. The company, managed by Francesc Alameda, has 17 employees and is based in Cassa de la Selva (Gerona) .
The company’s main activities are:
The company works with a portfolio of more than 300 customers composed by biomass plants, public companies and private customers
Ultimate usage of the wood is for electricity and heating purpose.
The company requests a loan of 250.000 € over 48 months to finance construction of a new wood drying system. This project will be realised next month.
This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.
This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 45 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.
The amount offered on the platform is limited to 122 500€, which is in line with the regulatory limits.
Like all projects presented to individual lenders on October, it is co-financed with institutional investors, sophisticated investors, and the management of October, subscribers to the October Fund.
With a turnover of 4 434 973 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.
On the last 3 years, the increase of turnover is linked to the fidelization of current customers and starting operations with Generalitat de Cataluña for excavating and clearing forest services. In 2017 decrease in profitability is related to a late winter with lower sales in December and higher level of stocks.. Forecast is based on the performance in 2017.
The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,08 and a strong financial structure, with a forecast net debt / ebitda ratio of 2,77 and a net debt / shareholder equity of 89%.
The analysis of the project leads to a credit rating of C and a 7,2% annual interest rate and counts on the personal guarantee of Francesc Alameda Torrent.
*The multiple of FCCR at 1,08 means that the company has a safety margin of 8% relative to its ability to repay its credit maturities.
The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (Informa & Asnef). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.
Points of caution: