Cardinal Financial, Inc.

The Term Sheet summarizes all essential criteria and provides explanations below the table.

• Because all of the financial accounts for this assignment are for the parent business, Cardinal Financial, Inc. was chosen as the borrower.
• Cardinal Nigeria Limited was chosen as a guarantor since its loan books account for 65 percent of the parent company’s.
• Because it is a Goldfinch Protocol regulation, Lender is a collection of Backers.
• The kind of revolving credit facility was chosen since the firm works in three countries at the same time and will be able to use the credit line only when necessary and direct it as it sees fit.
• For Backers, senior secured debt is the best option. That is exactly what we require in emerging markets. We will be the first to collect the company’s assets if difficulties develop.
• Under the conditions of this assignment, the facility size is set at $5,000,000 USD.
• Goldfinch loans are only available in USDC.
• I calculated the interest rate for this loan based on the company’s collateral and guarantee, as well as Backers’ interest and typical lending rates in these areas. Because the interest revenue on the loans it makes is larger, these would be the best conditions for the firm.
• A firm in a developing market should issue a Revolving Credit Facility for at least 24 months. They’ll be able to make the most of the cash, and we won’t have to worry about long-term dangers.
• The Goldfinch procedure determines the monthly interest payments.
• At Maturity, principle payments are received as Bullet principal since it is better for the Revolving Credit Facility. When the borrower utilizes the line of credit, he will pay monthly interest and return the whole loan amount at the conclusion of the 24-month loan period.
• As security for the loan, we accept cash in bank accounts. According to the financial documents of the firm, there is sufficient cash in bank accounts to serve as collateral.
• The LTV assumes that the firm will have a bank account with at least $6,000,000 in it. The minimum cash needed is also based on this. The Debt-to-Equity ratio of 2 is compared to the existing Debt-to-Equity ratio. It’s now lower, and the firm could theoretically take on even more debt.
• I believe that the covenant selection for the portfolio is ideal in order for the company’s credit portfolio to expand and perform well in the future.
• Information covenants will allow us to maintain control over the firm, track its performance, and keep the borrower viable for the next 24 months.