Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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DIP Financing for Distressed Deals

When a real estate deal slips into Chapter 11, a loan matures with no refinance in sight, or a special servicer puts a note out for sale, conventional capital tends to disappear at exactly the moment it’s needed most. One of the lenders in our network was built for those situations.

They provide debtor-in-possession (DIP) and bankruptcy-exit financing secured by real estate — super-priority capital that funds a Chapter 11 case through to a plan when existing financing is unavailable or insufficient. Since 1988 the firm has deployed more than $4 billion across debt and equity special situations, writes checks from $3M to $50M, and can close in as little as 5 to 10 business days.

What they’re actively doing right now:

• Super-priority DIP financing secured by real estate — Chapter 11 cases where existing lenders won’t or can’t advance

• Bankruptcy-exit financing to carry an asset out of the case

• Note purchases — performing, sub-performing, and non-performing, from banks and special servicers

• Property acquisitions through bankruptcy, foreclosure, or receivership

• Bridge capital for maturing loans, discounted payoffs, and sponsor liquidity needs

A sample of what they’ve recently closed (types and sizes only):

• $45M super-priority DIP on a 14-state senior housing portfolio

• $20M super-priority DIP on a special-use sports & entertainment property

• $30M bankruptcy-exit financing on a ~1,900-acre entitled land site

• $35M acquisition of a defaulted note on an infill development site

• $2.5M super-priority DIP on an industrial property

Asset types run the full range — senior housing, multifamily, industrial, hospitality, student housing, manufactured housing, retail, Class A office, and entitled land.

If you’re a sponsor staring at a maturity you can’t refinance, a partner or asset heading into bankruptcy, or a note you want to buy at a discount — this is exactly the capital that’s hard to find, and they’re actively looking to place it. Send us the situation and we’ll tell you quickly whether it fits.

• We’ve been building this email list since 2017 and we’re up to 43,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.

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• EN Capital is NOT a broker dealer and does not sell securities

• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253