La Lomita, Inc. and Affiliated Companies

The Trigger:

• The Company’s existing lender was “out of market” in its loan terms, over-collateralized for its loan size, and unable to accommodate expanded debt facilities for the Company’s organic growth plans already in process.

The Project:

• Corner Capital found that the Company’s existing long term debt, with several lenders, was over-collateralized due to its lender’s aversion to the retail c-store asset class. Furthermore, the existing debt was originated in the late 2008 lending environment, when the Company was unable to pursue alternative financing due to lack of availability.
• Corner Capital sought to collateralize the new loan with fewer Stores, freeing up the remaining retail assets to use as “dry powder” in its acquisitive and organic growth efforts.
• Corner Capital suggested several facilities to take to market – comprised of senior term, store development lines of credit, and accordion-style revolver for future growth.

The Solution:

• Corner Capital Advisors structured a refinancing and capital-raising transaction on behalf of the Company, refinancing nearly 96% of its existing debt with a more suitable lender, collateralized by a reduced number of c-store assets.
• Despite the reduction in collateral, the new loan structure still provided a strong coverage ratio of 2.40x FCCR on the refinanced portion of the Company’s debt service, while maintaining a projected LTV of approximately 78% — attractive lending terms that were both marketable and accretive to the Company and a new strategic lending relationship.
• Corner Capital’s proposed refinancing package considered the Company’s long term needs for future growth and included a new credit facility, construction financing, and a forward facility, through the same lender providing the term debt financing.

The Result:

• Corner Capital successfully marketed the proposed refinancing package through its network of lenders familiar with the Downstream Energy industry.
• The Company was able to consolidate its financing sources into a single lender that understands the Company’s business, has high concentration thresholds, and will grow with the Company.