Refinancing a NAV loan
If your NAV facility is approaching maturity, or its terms no longer fit, it can be refinanced. A new lender repays the existing facility at closing and takes over the security. Nodem refinances NAV loans for family offices, holding companies and fund managers, with facilities from $10m to $100m+.
When refinancing makes sense
The facility matures in the next 12 months and the portfolio needs more time to exit.
Covenants have become tight as the portfolio has changed.
Interest is paid in cash and you would prefer it to roll up until assets are sold.
Your bank is reducing its lending against private assets.
You need a larger facility to fund new investments or commitments.
What we need to give you a view
The current balance, maturity date and interest rate
A summary of the existing terms, or the facility agreement
The latest schedule of portfolio holdings and values
What you would like to change
How long it takes
01
An indication of appetite within three business days.
02
An indicative term sheet within days of receiving full information.
03
Funding in about a month, timed to the repayment of the existing facility.
Have a facility coming due?
Send us the maturity date, current balance and a portfolio summary. We will tell you within three business days whether we can refinance it and roughly what it would cost.
Frequently asked questions
Can a NAV loan be refinanced?
Yes. A new lender provides a facility that repays the existing one at closing and takes security over the same portfolio. It is a common step when a facility is close to maturity or its terms no longer suit the borrower.
When should I start?
Six to nine months before maturity is sensible. That leaves time to compare options and to close without pressure from the existing lender’s deadline.
Are there costs to repaying my existing facility early?
There can be. Check for a non-call period, a make-whole or minimum return, and any exit fee. We take these into account when comparing a refinancing with staying in the current facility.
Can a bank NAV facility be refinanced by a non-bank lender?
Yes. Borrowers usually do this for flexibility, such as rolled-up interest, a longer term or a higher loan to value. Non-bank facilities generally cost more than bank facilities.
How large a facility can Nodem refinance?
From $10m to $100m+. See our investment parameters.
How long does a refinancing take?
We give an indication of appetite within three business days, issue indicative term sheets within days, and typically fund in about a month. How the fast process works.
Nodem Capital is an FCA-authorised NAV lender providing facilities of $10m to $100m+ to family offices, GPs, LPs and holding companies. Contact Alex Branton at abranton@nodem.com.