Hilco Financial - About Hilco Financial

Q.	How much money is in your fund?	A.	Hilco Financial is not a fund. Rather, we have been capitalized by our majority owner, Hilco Trading Co., Inc., which has more than $350 million in available capital. Also available to us are additional lines of credit through hedge funds and other cooperative resources.
Q.	What types of loans are you acquiring?	A.	Typically, secured commercial term loans. Ideally, there should be a real estate component, but that's not an absolute prerequisite. We do not seek revolvers.
Q.	What is the maximum term length you are willing to accept?	A.	We have no maximum or minimum limitation.
Q.	Will you look at unsecured loans?	A.	Yes.
Q.	What is the size of your typical transaction?	A.	Generally, we seek to acquire one-off loans of $1 million to $10 million, or multi-loan portfolios up to $10 million. Our "sweet spot" is between $1 million and $3 million. We will also look at deals in excess of $10 million.
Q.	Would you look at transactions under $1 million…say $500,000?	A.	Yes, we will look at smaller individual loans on a case-by-case basis. We are also interested in acquiring multiple small loans in a portfolio valued at up to $10 million.
Q.	What about loans or portfolios beyond $10 million?	A.	Talk with us. We have institutional partners and access to substantial investment capital beyond our own.
Q.	Would you ever acquire a secured junior position?	A.	Yes.
Q.	Do you want to take out the entire credit relationship or will you purchase portions of the debt of an account?	A.	We would prefer the entire relationship so we're not competing with our lender clients. As a rule of thumb, if it's a "single relationship" to the lender, we would consider it one as well.
Q.	Do you have any geographical constraints?	A.	Currently, we are only buying debt in the United States.
Q.	Regarding due diligence, what information is needed?	A.	The due diligence process on a one-off loan roughly follows these steps: Confidentiality agreement signed. Basic credit file information is supplied. This could include: the most recent appraisal; credit approval documentation; the borrower's most recent financial statements; copies of promissory notes, guarantees and primary collateral documents. The more "good" information we receive, the better. Indicative" bid submitted within two days or less. Upon acceptance of indicative bid, due diligence begins. We pay all associated costs. Loan sale agreement prepared and executed. Transaction funded.
Q.	What is the timeframe for a typical transaction?	A.	Two days or less to submit an indicative bid from the time we receive documentation. Time to complete a transaction can vary depending on circumstances, but a reasonable estimate is two weeks from bid acceptance.
Q.	How much experience do the key personnel of Hilco Financial bring to the table?	A.	David B. Chisholm, CEO, is a seasoned Corporate Finance executive with over 25 years of senior lending experience. Anthony F. DeMonte, Executive Vice President, National Originations Manager, has 25 years of diversified experience in corporate finance. He has managed finance divisions for firms such as GE Capital Corporation and Household Commercial Financial Services.