Examples of Bridge Loan in a sentence
If an Obligor is unable to refinance a Bridge Loan, the interest rate may be subject to an increase and as such Bridge Loans may have greater credit and liquidity risk than other types of loans.
Bridge Loans are generally a temporary financing instrument and as such the interest rate may increase after a short period of time in order to encourage an Obligor to refinance the Bridge Loan with more long-term financing.
The DIP Facility provides the WLB Debtors with $20 million in incremental liquidity and refinances the $90 million in obligations outstanding under the Bridge Loan Facility.
The cash received under the Bridge Loan has been allocated between the fair value of the loan liability and the value of the 1,500,000 common shares.
The Company also issued 1,500,000 common shares with a value of $75,000 as payment of arrangement fees and syndication fees incurred in connection with the Bridge Loan.