A non-profit obtained a low-cost, $10,000,000 line of credit in the midst of the COVID-19 pandemic.
Type of Financing
Revolving Line of Credit (RLOC)
Financing Amount
$10,000,000
The Need:
A large non-profit sought to increase its sources of available liquidity as the COVID-19 pandemic began to unfold. The non-profit was concerned that decreases in its investment portfolio values, lower contributions and the temporary cessation of certain of its activities might possibly create the need for immediate cash resources. The non-profit does not ever expect to draw upon this new RLOC facility and therefore was particularly sensitive to upfront and non-use fees.
Our Solution:
Coughlin created a thorough Request for Proposal package, negotiated extensively with bidders, and then led the working party group to a successful closing with a very tight timeline. The non-profit obtained a $10,000,000 RLOC with no upfront and no non-use fees and an interest rate equal to LIBOR + 1.0% (with a 2% floor) for a two-year term. With this emergency liquidity source in place, the non-profit can continue its operations and plans as normally as possible during a strange time knowing that it has a ready cash source available should circumstances require new funding.