Equi-Debt Information
Introducing AMC’s Equi-Debt Program
What is Equi-Debt?
AMC designed its Equi-Debt program to fill the emerging and growing need for owners/investors to capitalize commercial real estate in a market where there are few, if any, traditional sources available to do so.
Equi-Debt can be used when capital is needed for:
- Loan restructuring, including maturity, refinance or principal pay down issues.
- Partnership restructuring where there is a need to buy out a retiring partner(s) or monetize a partnership interest.
- Freeing up equity trapped in an investment controlled by CMBS or other loans that do not allow junior financing.
- Operating capital, including tenanting costs, major physical improvements, leasing commissions, etc.
- Acquisition equity to help fund a new purchase or to simply provide equity to take advantage of great investment opportunities.
How does Equi-Debt work?
Simple! Equi-Debt is essentially an injection of capital that acts like debt, but is structured as equity. Instead of recording a lien against the property, equity is infused into existing or newly created ownership structures, which:
- Eliminates problems with underlying loan covenants regarding junior financing, etc.
- Can be structured to eliminate income and property tax implications typically associated with a sale.
- Is typically much less expensive than traditional mezzanine debt structures.
- Allows the current owner to retain a portion of cash flow and future profits.
Equi-Debt is flexible and each Equi-Debt transaction is customized to provide a specific solution to unique capital needs. To learn how Equi-Debt can benefit you or your client, please contact our Acquisition Team members. Russ Hardt | (949) 660-8585 | rhardt@amcinvestments.com, Rick Hamilton | (949) 660-8588 | rhamilton@amcinvestments.com , or Taylor Arnett | (949) 660-8844 | tarnett@amcinvestments.com.