US Steel Scrap Metal Asset Based Loan Facility Funding Opportunity

This listing presents an opportunity for a senior secured lender to participate in a $3 million short-term asset-based loan facility. The facility is arranged by a commodity trade finance lender/arranger based in New York, USA, for a steel scrap metal trader located in Houston. The borrower specializes in various steel scrap products, including frac blocks, and is an exporter to India. The loan provides 30 to 60-day goods-in-transit financing for scrap steel metals in containers, with shipments originating from US yards to Indian discharge ports. The borrower, established in 2023, has a principal with over 15 years of experience. The financing is structured as a back-to-back transactional finance with the metal goods pledged as collateral. Each deal can range from $200,000 to $2 million, with up to five deals overlapping, not exceeding the $3 million aggregate facility limit. Funding is split 20% by the borrower and 80% via a Unitranche Loan, which itself comprises an 85% senior loan tranche and a 15% junior loan tranche provided by the listing entity. The listing entity will handle loan documentation, booking, and administration. The junior tranche is subordinated to the senior tranche, with repayment contingent on the senior lender being fully repaid in case of default. The senior lender's interest rate is SOFR + 10%pa with a floor of 3.5%pa.