What We Do For Investors
Krambo brings the same approach, due diligence, and rigor to nonprofit financings as we historically have brought to larger for-profit corporate financing transactions.
The resulting private placement memoranda provide far deeper, denser content and articulation of transaction terms than would typically be seen by prospective investors in transactions with nonprofits of comparable size.
This approach engenders confidence and credibility on the part of, and faster decisions from, prospective financial institutions.
PPMs: Staying One Step Ahead
Krambo’s private placement memoranda (PPMs) are designed to preemptively answer all questions a credit analyst at a financial institution would ask to make an informed credit decision.
Krambo’s PPMs include a detailed summary of the principal terms of the proposed transaction. These materials are designed to make it easy for financial institutions to decide whether to participate. This enables prospective investors to say “yes” or “no” to the proposed transaction rather than having to go back and forth working through key terms. The terms are structured to work well for both the borrower and the financial institutions that participate. This approach assures that transactions progress much faster than is typical.
Our goal is to do all the work prospective investors would have to do to evaluate a prospective transaction and instead let them focus on whether the proposed transaction fits their particular needs.
From Loan Files to Closing
Loan files (including those of mortgage lenders) provided by community development entities may be deficient in many respects (e.g., errors in loan title insurance policies, mathematical errors, or expired insurance certificates).
Krambo identifies any deficiencies and leads the remediation process so the loans are in marketable condition well ahead of the closing of the financing transaction.
Once loan files are reviewed and remediated, Krambo prepares detailed loan schedules for inclusion in the PPM. After Krambo obtains letters of intent from investors, the transaction moves into closing mode.
Together with special counsel, Krambo drives and coordinates the closing process. We review loan payment logs and provide calculations of the purchase price or collateral schedules. These are often calculated on a present-value basis as many affordable home developers sell homes subject to 0% mortgage loans.