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Frequently Asked Questions About NDH Capital

QUESTION: Who is NDH Capital?
NDH Capital Corporation (“NDH”) has been the number one corporate financer in a specialty industry segment, financing Fortune 500 corporations and other investment-grade-rated corporations.  Annual financing volume has been consistently between $100 million and $400 million, and to date has financed in excess of $2.8 billion in investment grade rated paper.  All financings are done on a non-recourse basis to its clientele.  All transactions are private placements and each is sold to a single institutional investor rather than hundreds, or even thousands, of smaller ones.  Closings are done in an efficient and expedient matter.  NDH has its own in-house counsel who originates and prepares all documentation for closings, which speeds up the closing process tremendously and provides clients with an excellently structured set of documents. 

QUESTION: What sectors or industries are eligible to be included in this program?
There are no industry limitations where a transaction may come from or what product is financed.

QUESTION: Do you have examples of products financed?  
Examples include transactions in the following segments: tax credits, energy, structured settlements, annuities, sales of businesses and business assets, deferred compensation for professional athletes and creative professionals, government programs, and triple net lease obligations.  There is truly a fit for any type of business where there is an investment-grade-rated entity securing the payment obligations.

QUESTION: What is the financed product your Program offers?
The product is a unique financing vehicle of institutional size transactions where there is an absolute and unconditional obligation from an investment grade rated entity.  Any recipient of such an obligation has the ability to monetize these future payment streams at institutional rates.  Some samples of these obligations are listed in the previous answer above. Samples of repayment structures include maintenance contracts, operating agreements, power purchase agreements, leases and many other forms of promises to pay.

QUESTION: Are there any geographical restrictions to where this product can be offered?
No.  This product can be offered anywhere in the world.  Our sources of funds must comply with federal law, so doing business in certain countries or companies that do business in those countries may be off limits.

QUESTION: What type of entity is eligible for this product?
Investment grade rated entities – Company or Government.

QUESTION: What are the currency and law restrictions for international transactions?
All repayments must be made in US currency and all documentation must comply with US law.

QUESTION: What is the application process for a potential transaction?
Just provide the name (stock symbol is helpful when applicable) of the rated entity who is guaranteeing the payment obligation.  No application forms or other documentation is required to process an application.

QUESTION: What is the interest rate?
Interest rate is determined by a combination of the credit worthiness of the Obligor, where treasuries are trading at the time we circle (lock) a rate and the length of repayment term.  These are institutional rates, which guarantees an extremely competitive rate; based over treasury and fixed for the entire repayment term.

QUESTION: Does or can the rate ever change?
No.  The rate is fixed for the entire repayment term.  Once the rate is circled it becomes fixed for the entire term of the financing.  In addition, we have the ability to lock in an interest rate up to 12 months prior to settlement.

QUESTION: What are the minimum and maximum repayment terms?
Five (5) to twenty-five (25) years.

QUESTION: What is the time frame from initial application to settlement?
2 weeks when all the stars are aligned.  Our in-house counsel reviews the documents provided to determine if the obligation is absolute and unconditional.  Any needed modifications to those documents are provided by us in writing.  Depending on how quickly their legal team can turn the documents around will ultimately determine the time frame to settlement. 

QUESTION: When does the seller of equipment or entity receiving proceeds in the transaction get their funds?
All proceeds are paid in entirety at time of settlement in the form of a wire transfer.

QUESTION: What transaction sizes are eligible for this program?
$10 million to as high as possible.

QUESTION: Who monitors and administers the loans?
Whichever finance source we assign the particular transaction to.

QUESTION: Who are your finance sources?
We have a number of institutional investors (major insurance companies and pensions) acting as our finance sources.  We have been able to develop excellent relationships over the past 15 years which allows this excellent program to be offered.  Depending on who the rated entity is, industry type and other deal variables will determine which finance source is used for a particular transaction.  All parties involved will know who the source is prior to settlement at the time we have a loan commitment and a non-circumvention agreement in place.

QUESTION: How are these obligations secured?
The payments are secured by the absolute and unconditional obligations of an investment grade rated entity and we file UCC’s against the repayment obligations.

QUESTION: What billing method is used for repayment?
Wire transfers.  No matter if the repayments are made in monthly, quarterly, semi-annual or annual installments.

QUESTION: Does a third party seller of equipment have any contingent liabilities in the future for any circumstance of non-repayment by the Obligor (Purchaser of equipment)?  
No.  Transactions are non-recourse to our clients.  100% of the recourse is to the Obligor making the payments. 

QUESTION: Are board resolutions and corporate certificates required of the Obligor to settle these transactions?
Yes. 

QUESTION: Can these transactions be structured as off- balance sheet if so desired by the Obligor?
Yes.  Each entity creates the transaction documentation and it is an individual decision how they decide to treat the obligation. 

QUESTIONS: What benefits do you have over other financing programs?
We offer a great number of benefits as we are more flexible than any other traditional or non-traditional lending source.  The simplest way to view this program is to know that the financing structure is completely flexible in the areas of structure, term, scheduled repayment amounts and deferred repayment periods.  This is on top of the fact that we are easy to work with and provide unparalleled service.

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NDH Capital Corporation 411 Theodore Fremd Avenue Suite 206 South Rye NY 10580 NDH_Capital
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