Challenge:
- FDR Management, a nightclub and restaurant operator, was seeking to raise capital to finance the build out of multiple new venues in Las Vegas, NV
- The nightclub business has generally been deemed difficult to finance, due to the historically short life span and “faddy” nature of most nightclubs.
- Libra’s challenge was to educate the market on the continued growth of Las Vegas and the longer life span of nightclubs in the tourist-dominated Las Vegas market.
Solution:
- Libra structured a financing which would allow FDR to secure the capital for multiple build outs, allowing them to continue to increase their market share.
- Rather than a traditional Senior and Mezzanine debt financing, Libra structured an "all-in" credit facility which provides the availability of a traditional Senior/Mezzanine financing with a lower blended cost of capital.