Bank business development officer resource

Commercial BankBusiness Development Officers / Relationship ManagersPresented by Cinergy Commercial Capital

Contents

About Cinergy Commercial Capital Who we are What we do

Alternative Lending Landscape Today

Cinergy Lending Products

Why Use Cinergy

Representative Assignments

Concluding Thoughts

Appendix: Product Credit Criteria / Pricing

About Cinergy – Who We Are

Cinergy Commercial Capital, Inc. ("Cinergy") was founded in November of 2009

By choice, Cinergy is a commercial finance intermediary, not a direct lender

This allows us to assist clients in an advisory capacity, finding the best financial solution to meet our clients’ financing needs

As an intermediary, we are approved by over 70 lenders ranging from smaller specialized finance companies to the largest lenders in the country

We have the ability to offer a broad array of financing solutions for businesses large and small, across the credit profile spectrum

With access to active financing programs combined with over 30 years of financial services and capital markets expertise, we provide solid solutions in today’s difficult credit environment

About Cinergy – What We Do

Acting in an advisory capacity, Cinergy provides its clients financial solutions more efficiently and effectively than they can do on their own.

We do this by having a deep understanding of our lenders, their financing programs and "sweet" spots.

Fees No up front fees Success based only

Alternative Lending Landscape Today

The alternative lending market is highly fragmented and hard to navigate Even with the tough lending environment and

consolidation, there are many lenders and an abundance of financial products

Few lenders will make one loan on all the assets of your company

More often, each alternative lender specializes in a certain asset class and has strong industry preferences

Choosing an incorrect lender, can result in paying more than necessary or being subjected to onerous terms

Working with an advisor who knows the alternative lending space can avoid these problems

Cinergy Lending Products

Secured Asset Based Lines of Credit starting at $250,000 (U.S. Only)

Mezzanine debt from $250,000 (U.S. Only)

Federal Government Contractor Financing - $500k Minimum (U.S. Only)

Cash Flow Lines of Credit starting at $5 million (U.S. Only)

Purchase Order Financing (including WIP) starting at $200,000 (U.S. Only)

Accounts Receivable Financing starting at $100,000 (U.S and International)

Equipment Leasing starting at $50,000 (U.S. Only)

Infrastructure / Large Project Finance (U.S and International) 100%, long term, low fixed rate debt financing Large ($20 million minimum) infrastructure and real estate projects Requires absolute, unconditional guarantee of repayment of the debt by an investment grade

(BBB or higher) rated entity

Why Use Cinergy

Highly Focused Cinergy has chosen to focus on a business sector - small to middle market companies - that is under

served in terms of expert advice and guidance when it comes to finance and sourcing capital.

Customized Service, Senior Level Focus Cinergy provides customized, tailored financial advisory services optimized for the specific needs of

each client. Our clients experience the highest level of service from our seasoned executive team members.

Strong Network of Key Relationships Clients benefit from Cinergy’s extensive network of relationships throughout our practice areas. Our

network of relationships, from capital providers to other professionals, is broad and relevant in helping our clients achieve their objectives.

Exceptional Transaction Experience Cinergy brings each client valuable and diverse transaction experience. Cinergy is compensated only

when the client receives the financing they desire.

Cinergy Creates Value The Cinergy team's background in capital markets, structured finance, equity raising, C-level operations,

restructurings and business development enables Cinergy to raise capital, more efficiently and effectively than our clients can on their own.

Representative Assignments

$4,000,000

Purchase Order Line of Credit

Chip Technology Distributor

Irvine, CA2011

$1,500,000

Secured Line of Credit

Software Company

Livingston, NJ 2011

$3,000,000

Purchase Order Line of Credit

Food Distribution

Los Angeles, CA2011

$750,000

Mezzanine Term Debt

Medical Device Company

Fremont, CA

2011

$2,000,000


Healthcare Company

North Hills, CA2011

$1,000,000


Online Marketing Company

Phoenix, AZ 2011

Concluding Thoughts

Bank lending is compatible with alternative lending – providing an additional financing tool for bank clients Mezzanine Debt Purchase Order Lines of Credit

An advisor to help navigate the fragmented alternative lending space

Cinergy can help when clients do not meet a bank’s lending criteria Transaction size Credit guidelines

AppendixLending Products

Credit Criteria / Pricing

Lending Products

Secured Lines of Credit / Term Debt Revolving line of credit secured by accounts receivable, inventory and term loans on equipment

Secured Line Lenders Tier 1 Lender

• Loan size: $10+ million• At least 12 to 18 months of profitability• Borrowing base: 80% on AR / 30% to 50% on Inventory / 70% of rapid liquidation value on

equipment• All in pricing: 6% to 8%

Tier 2 Lender• Loan size: $1 to $10 million• Demonstrate 6 months of profitability• Borrowing base: 80% on AR / 30% to 50% on Inventory / 70% of rapid liquidation value on


Tier 3 Lender • Loan size: $1 to $5 million• Current losses, but a very good “story” • Borrowing base: 80% on AR / 30% to 50% on Inventory / 70% of rapid liquidation value on


Lending Products (Cont.)

Mezzanine Debt Mezzanine debt is an instrument that represents a claim on a company's

assets which is senior only to the company's common shareholders Loan size is generally 2 to 3.5 X EBITDA, capped by the book equity of the

company Priced at 12% to 20%, mezzanine debt often includes “equity kickers" via

warrants Starting at $250,000 to $20 Million

Purchase Order Financing Two forms: Finished Goods / Work in Progress Generally, 100% of the cost of goods and shipping Funding Availability

• Finished Goods – virtually unlimited / based on credit quality of customer• Work in Progress - limited based on the credit quality of the borrower and

customer Priced at 2.5% to 4% per 30 days


Factoring Accounts Receivable Available to companies not eligible for secured line of credit Receivable is purchased vs. financed Pricing is function of customer and size of the credit line – generally

1.5% to 3.5% per 30 days Be careful!!

• Factors are not all equal with respect to contract terms – some are highly onerous

Inventory Finance Very limited availability for stand alone credit Usually combined with a secured line of credit or factoring line of credit

– sublimit is generally 30% to 50% of line usage Pricing is slightly higher than the corresponding line of credit


Equipment Leasing Purchase of new or used equipment

Sale / leaseback of existing for working capital

Pricing / loan to value ratio / term are a function of the credit quality of lessee and type of equipment

• For weak credit quality lessee, pricing can be in the 30%+ range and will require substantial additional collateral

• For strong credit quality pricing can be in the single digits / LTV as high 100%

Large Project / Infrastructure Finance

100%, long term (up to 30 years), low cost (4% to 7%), fixed rate financing for large real estate and infrastructure projects worldwide.

Minimum transaction size is $20-25 million with virtually no practical maximum. (Smaller transactions will be considered on a case-by-case basis)

Typical clients are domestic and international municipalities, government agencies, healthcare operators and energy providers. Repayment of the financing MUST be UNCONDITIONALLY guaranteed by an investment grade rated entity.

Guarantor can be third party with vested interest in seeing the project succeed.

Institutional funds consortium requirements: Summary of the proposed project or property Profile of Tenant Investment Request and Use of funds Proposed Lease type and lease term Current Status of Project & Approvals Information on Developer Requested Terms of Transaction

PETER J. LEVASSEURChief Executive Officer

p 949.460.6448c 949.400.0898f 949.724.4566

[email protected] www.cinergy123.com

When trust and experience matter most…

JANICE M. IBEYPresident

p 949.460.6448c 714.366.4884f 949.724.4566

[email protected] www.cinergy123.com

19800 MacArthur Blvd * Suite 300 * Irvine, CA * 92612

Bank business development officer resource

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