A Florida-based technology firm sought a short-term refinance on their class-A headquarters in Sarasota, FL. A shift in the technology industry challenged the sponsor’s financial performance, ultimately tripping a covenant in a loan collateralized by their headquarters. Their lender elected to accelerate the debt.

The sponsor turned to PMC for a short term, asset-based loan to repay the existing lender while they explored options for a recapitalization. PMC assessed the collateral value under multiple exit scenarios, including an SBA refinance, a sublease of the space, and a sale. Based on a clear understanding of the company’s operating history and expected path forward, PMC provided the sponsor with the runway needed to improve the business.

Within the initial loan term, the sponsor successfully marketed and sold the asset to an owner-user — paying off PMC’s loan and allowing the sponsorship to strategically relocate.