Profitable Tobacco Shop Seeking Loan in Istanbul, Turkey

- Seeking senior secured lender on a $1.5 million short-term commodity trade finance facility for a Turkish tobacco trader.

- Each deal amount is approx $750,000 on shipment of tobacco leaves from India to Antwerp, Belgium.

- Up to 2 deals may overlap but cannot exceed $1.5 million in aggregate.

- Each deal is for a total duration of approx 60 – 90 days and is on an uncommitted, transactional basis and continuously recurs.

- Each deal is comprised of 2 phases.

First phase is voyage finance from India load port to a warehouse in Antwerp, Belgium for a duration of up to 60 days.

- Second phase is warehouse finance in Antwerp, Belgium for a duration of up to 30 days.

- Shipped tobacco is pledged as collateral to the Lenders.

- Senior secured lender to provide 85% of each loan.

- The company will provide 15% of each loan as a junior secured lender and document the agreements and book/administer the loans.

Senior lender interest rate is SOFR + 12%pa. Current SOFR is approx 5.35%pa. Thus, all in rate is 17.35% pa (=12% + 5.35%) currently.

- There will be a floor SOFR of 3.5% pa.

- Established 16 years ago and headquartered in Istanbul, Turkey, promoter is a tobacco producer and trader. The company has over 120 employees of which 30 employees are in Turkey.

- There are 100 clients, globally located but most of them are in Europe.

- The company has 7 years of strong relationship with the Indian supplier, ITC. Purchases 4 - 5 shipments from ITC every year with satisfactory performance on quality and quantity.

- Company's total assets are $4.5 million, and annual sales are $2.8 million.

- The promoter is New York based and is currently in Tokyo, the business is headquartered in Istanbul.

Company sells tobacco leaf (40% of sales), cigar leaf (10%) and tobacco derivatives (50%).

Inventory of tobacco leaves and cigar leaves, machinery, factory and property.

The company has tobacco factories in Brazil and Indonesia as well as lease agreements with 10 warehouses globally.

The 2 factories are owned and 10 are rented.

The company has several trade finance funds providing secured financing.

The company also finances its activity through internally generated funds.

There is 1 shareholder in the business.