Blended Property and Corporate Refinance Under Bank Recall

Situation

An established industrial operator was required to urgently refinance approximately $28 million of debt following the recall of facilities by a major bank. The debt was secured across a portfolio of owner-occupied industrial properties housing specialised recycling and processing operations, alongside a smaller component of corporate lending.

The borrower faced a strict refinance deadline, with failure to execute resulting in default interest and legal enforcement costs.

Complexity

• Bank recall requiring full repayment within a compressed timeframe

• Security comprised of owner-occupied industrial properties with embedded recycling plants

• Limited non-bank lender appetite due to operational and liquidity considerations

• Portfolio-level security with uneven asset quality and valuation outcomes

• Need to bridge valuation shortfall without triggering enforcement or dilution

Role

Capital structuring adviser, responsible for refinance strategy, lender selection, and execution across property and corporate facilities.

What Was Done

• Assessed the recalled debt structure and refinance constraints

• Identified lenders with appetite for specialised industrial and owner-occupied assets

• Structured a portfolio-backed facility secured across multiple industrial properties

• Limited valuation requirements to two core recycling facilities at a maximum 60% LVR

• Coordinated the use of a valuation firm approved by the borrower, leveraging prior site familiarity

• Addressed valuation shortfall through a blended structure incorporating a corporate loan facility

• Structured a $5 million corporate facility secured against the trading businesses at sub-14% pricing

• Coordinated execution to meet refinance deadlines and prevent default enforcement

Outcome

• Full refinance of recalled bank debt successfully completed

• Borrower avoided default interest, enforcement action, and legal costs

• Capital structure stabilised through a blended property and corporate facility

• Clear pathway established for asset sale and LVR reduction

• Borrower positioned to refinance back to a major bank within a 12–24 month timeframe