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Private Investor Compagnie, a 30 year old real estate investment banking company with its headquarters in
Canada with offices and affiliates in Canada, United States, Mexico, Panama, Costa Rica, Nicaragua, Colombia, Brazil, Australia, and Belgium provides capital for the construction, refinance and acquisition of projects in excess of $10 MM worldwide. We are considered by some to be experts in Latin America project financing although we serve North America, Europe and Australia equally as well.

We offer conventional and alternative finance programs that
range in interest.

• Conventional debt financing from 225 bps to 400 bps
  spread over the 6 month LIBOR
• Bridge debt financing from 700 bps over the one year
  LIBOR
• Equity capital in conjunction with our debt programs
• Standby and Irrevocable Letter of Credit Financing

NEW PROGRAM
For over 30 years our principals have provided both conventional and “outside the box” financing developers. Property owners, REIT’s, and hedge funds.

For the Letter of Credit Financing Program described herein:

Our key index is based upon the 30 day LIBOR index, floating for the term of the loan. The primary vehicle
we leverage and fund against is a Direct Pay Letter of Credit (DPLC).  There are no Underwriting of Due Diligence Fees charged with this vehicle as the funding is entirely based on an Irrevocable Letter of
Credit provided by the Borrowers bank, nor are there any prepayment penalties.

OVERVIEW

An entity, desiring to borrow such funds obtains a Direct Pay Letter of Credit (DPLC) from a domestic “A” rated (U.S.) bank or the U.S. office of an international ”A” rated bank. If you obtain the DPLC from an international bank that does not have an office in the U.S., the DPLC must be confirmed by a U.S. bank. Usually, the confirming bank already has a corresponding relationship or “line” with the international bank. Initially, all we need is simply a Letter of Intent only from the bank that is issuing the DPLC (or also the confirming bank if required) to begin the loan syndication – which generally will take 2 to 4 weeks to fund. When obtaining a DPLC, the borrower’s asset(s), securities, cash, real estate, etc. are generally used as collateral for the DPLC by the Borrowers bank. Preferred banks letters have A-rated paper/letters of credit.

The proceeds from the loan can also be used to:

A. Refinance or pay off more expensive loans.
B. Municipal Funds.
C. Real Estate Acquisitions & Improvements.
D. Commercial Development/Construction.
E. Commercial CDs. Arbitrage our low rate verses a CD rate of 4% – 5% on cash deals. Essentially, the basis of value around which the DPLC is issued is by the issuer’s judgment, acceptable collateral to support the DPLC. No such ‘call’ or opinion on collateral is rendered by us.

DEBT SERVICE

Funds available [borrowed] through this program can be paid on an “interest-only” basis and do not require amortization. Therefore, funds remain outstanding as long as the DPLC remains outstanding, or continues to renew. Should the bank issuing the DPLC require amortization, the bank can, likewise, reduce the amount of the DPLC in future years. This is among the mechanics negotiable w/the issuer of the instrument. Currently, 1st quarter 2009, 30-day LIBOR is 0.32% to 0.39%. Because of the interest-only feature, anyone (including the bank with a reserve collected from the proceeds) can maintain the interest payments, thus assuring the DPLC does not go into default.

CLOSING

Closing of a transaction generally requires no longer than 30 days
following receipt of the Letter of Intent to issue the DPLC. NOTE: the
program can proceed to set-up and contract, BEFORE the borrower
actually takes down the bank instrument and incurs any fees that
may be charged by the issuer.

LOAN AMOUNTS

Funds are available up to the bank’s own ability to issue a dollarmaximum DPLC. Generally, a minimum of $10 MM must be borrowed to qualify. There is essentially no maximum.

TYPICAL PROTOCOL EXAMPLE

1. Borrower identifies an institution willing and prepared to issue them a DPLC. That institution’s willingness and ability is demonstrated by their providing the client a Letter Of Intent (LOI) for such an instrument’s issue — after a conversation with OUR INVESTOR. Borrower’s bank provides that LOI to our designee. To this point, there’s no cost to client.
2. Our Investment Group will issue a letter to the borrower’s bank, if requested; stating that all proceeds of the loan shall be deposited in their bank, into an account in client’s name, once they issue the DPLC .
3. Our Investment Group then begins the two-to-four week process of syndicating the funds while the bank begins the process of issuing the DPLC. The DPLC is structured such that a trustee bank is the beneficiary bank.
   Our Investment Group will agree not to draw, or ‘call’, on the DPLC unless:

A. The interest only (30-day LIBOR) payment is in default or,

B. The small annual renewal fee is not paid or,

C. The DPLC is no longer renewed by the bank, or borrower, at which time the principal funds due will/must be repaid to our Investment Group. However, the borrower may pay down the amount over time with their institution and eventually close out the loan – or refinance it w/other take-out facility, at any time as there
is no pre-payment penalty.

4. Once the DPLC is issued and the syndication is complete, our investment group will deposit the full amount of the DPLC, less any one-time fees, into the borrower’s bank account at the institution that issued the DPLC — unless otherwise directed by the DPLC issuer. Specifically, how are the fees structured?  The program is structured such that the borrower will avoid paying any upfront fees and there are several components. At the time of funding, the following fees are deducted out of the gross deposit made by our investment group. The one-time setup fee generally $5,000, a one-time syndication fee of usually 0.55% or more depending on the Trustee Bank, the issuing (your bank) banks’ L/C cost (generally 50 to 150 basis points); brokerage fees, lender fees all which rarely exceed (combined) six percent, all inclusive. However, the 30-day LIBOR will be calculated based upon the gross amount of the loan.

First year fees:
1. Origination Fee: Usually 2.0 or more points depending on size and term of the deal. With your banks permission, we can deduct your banks DPLC fee from the proceeds to eliminate any upfront cost for financing.
2. Syndication Fee: Usually 0.55% or more depending on the trustee bank.
3. A variable cost of floating 30-day LIBOR interest only, based on the gross of the loan, paid Monthly.
4. Our Fee is 50 basis points which is also deducted and paid from proceeds at closing.
5. Your Broker’s fee of 25 to 50 basis points will also be deducted and paid from proceeds at closing.
Second and Subsequent year Fees:
1. A variable cost of floating, 30-day LIBOR interest only, paid monthly.
2. An annual renewal fee (quoted) payable to trustee bank for reunderwriting & renewing the Loan.