The most common form of CTN™ loan utilizes 100% of excess cash flows to generate maximum proceeds for the acquisition of a net leased property occupied by a single credit tenant.  Norseman's non-recourse financing is the most attractive way to augment the equity required for a successful purchase and avoids the complications associated with getting a financial partner.  Where maximum leverage is the requirement, a fully amortizing CTN™ loan is the best solution.  Where maximum proceeds are not necessary, Norseman can provide bridge financing with a short-term interest only CTN™ loan.  Norseman CTN™ mezzanine financing is most attractive when the senior lenders can offer a 30-year amortization schedule and the mortgage term equals or exceeds the expiration of the credit lease.  This provides maximum excess cash flows and mezzanine CTN™ loan proceeds.

Most acquisition transactions have 9-12 years remaining in the lease term.  Norseman financing becomes especially attractive when there is 10-15 years of remaining lease term, where there are above market rents, vacant (dark) net leased buildings, or where there are property location (market) issues or other real estate conditions which would cause the senior lender to reduce their advance rates, but not necessarily the amortization schedule.

The maximum proceeds available through the Norseman CTN™ financing program is equal to the present value of 100% of the cash flow in excess of the senior mortgage debt where the discount rate is determined based on the credit of the tenant and the average life of the financing. The discount rate is equal to the average life SWAP rate plus the off the rack spread value of the tenant.  Under this construct, The Norseman Group can in many cases provide a combined senior and mezzanine CTN™ package with total financing proceeds approaching 100% LTV.