Asked Questions About NDH Capital
Who is NDH Capital?
NDH Capital Corporation (“NDH”) has been the number
one corporate financer in a specialty industry segment, financing
Fortune 500 corporations and other investment-grade-rated corporations. Annual
financing volume has been consistently between $100 million
and $400 million, and to date has financed in excess of $2.8
billion in investment grade rated paper. All financings
are done on a non-recourse basis to its clientele. All
transactions are private placements and each is sold to a single
institutional investor rather than hundreds, or even thousands,
of smaller ones. Closings are done in an efficient and
expedient matter. NDH has its own in-house counsel who
originates and prepares all documentation for closings, which
speeds up the closing process tremendously and provides clients
with an excellently structured set of documents.
QUESTION: What sectors or industries are eligible to
be included in this program?
There are no industry limitations where a transaction
may come from or what product is financed.
you have examples of products financed?
Examples include transactions in the following segments:
tax credits, energy, structured settlements, annuities, sales
of businesses and business assets, deferred compensation for professional
athletes and creative professionals, government programs, and
triple net lease obligations. There is truly
a fit for any type of business where there is an investment-grade-rated
entity securing the payment obligations.
QUESTION: What is the financed product your Program
The product is a unique financing vehicle
of institutional size transactions where there is an absolute
and unconditional obligation from an investment grade rated
recipient of such an obligation has the ability to monetize
these future payment streams at institutional rates. Some
samples of these obligations are listed in the previous answer
above. Samples of repayment structures include maintenance contracts,
operating agreements, power purchase agreements, leases and
many other forms of promises to pay.
QUESTION: Are there any geographical restrictions to
where this product can be offered?
No. This product can be offered anywhere in the world. Our
sources of funds must comply with federal law, so doing business
in certain countries or companies that do business in those
countries may be off limits.
QUESTION: What type of entity is eligible for this
Investment grade rated entities – Company
QUESTION: What are the currency and law restrictions
for international transactions?
All repayments must be made in US currency and all documentation
must comply with US law.
QUESTION: What is the application process for a potential
Just provide the name (stock symbol is
helpful when applicable) of the rated entity who is guaranteeing
the payment obligation. No
application forms or other documentation is required to process
QUESTION: What is the interest rate?
rate is determined by a combination of the credit worthiness
of the Obligor, where treasuries are trading at the time we
circle (lock) a rate and the length of repayment term. These
are institutional rates, which guarantees an extremely competitive
rate; based over treasury and fixed for the entire repayment
QUESTION: Does or can the rate ever
rate is fixed for the entire repayment term. Once
the rate is circled it becomes fixed for the entire term of
the financing. In addition, we have the ability to lock
in an interest rate up to 12 months prior to settlement.
QUESTION: What are the minimum and maximum repayment
Five (5) to twenty-five (25) years.
is the time frame from initial application to settlement?
weeks when all the stars are aligned. Our in-house
counsel reviews the documents provided to determine if the obligation
is absolute and unconditional. Any needed modifications
to those documents are provided by us in writing. Depending
on how quickly their legal team can turn the documents around
will ultimately determine the time frame to settlement.
QUESTION: When does the seller of equipment or entity
receiving proceeds in the transaction get their funds?
All proceeds are paid in entirety at time of settlement
in the form of a wire transfer.
QUESTION: What transaction
sizes are eligible for this program?
$10 million to as high as possible.
QUESTION: Who monitors and administers the loans?
Whichever finance source we assign the particular transaction
QUESTION: Who are your finance sources?
have a number of institutional investors (major insurance companies
and pensions) acting as our finance sources. We
have been able to develop excellent relationships over the past
15 years which allows this excellent program to be offered. Depending
on who the rated entity is, industry type and other deal variables
will determine which finance source is used for a particular
transaction. All parties involved will know who the source
is prior to settlement at the time we have a loan commitment
and a non-circumvention agreement in place.
QUESTION: How are these obligations secured?
payments are secured by the absolute and unconditional obligations
of an investment grade rated entity and we file UCC’s
against the repayment obligations.
QUESTION: What billing method is used for repayment?
transfers. No matter if the repayments are made
in monthly, quarterly, semi-annual or annual installments.
Does a third party seller of equipment have any contingent
liabilities in the future for any circumstance of non-repayment
by the Obligor (Purchaser of equipment)?
No. Transactions are non-recourse to our clients. 100%
of the recourse is to the Obligor making the payments.
QUESTION: Are board resolutions and corporate certificates
required of the Obligor to settle these transactions?
QUESTION: Can these transactions be structured as off-
balance sheet if so desired by the Obligor?
entity creates the transaction documentation and it is an
individual decision how they decide to treat the obligation.
QUESTIONS: What benefits do you have over other financing
We offer a great number of benefits as we
are more flexible than any other traditional or non-traditional
lending source. The
simplest way to view this program is to know that the financing
structure is completely flexible in the areas of structure, term,
scheduled repayment amounts and deferred repayment periods. This
is on top of the fact that we are easy to work with and provide