Complementary Financing

Complementary Financing

A type of financing in which different lenders agree to fund under similar yet parallel documentation and a pro rata security package.

Complementary Financing

A loan made by more than one lender that is secured by the same stock or other security. All lenders have a lien on a given security until the loan is paid off. In complementary financing, two or more lenders make two or more loans to a single borrower and secure those loans by a certain security. The amount of the lien on the security is in proportion to the amount of the loan each lender makes. For example, if Lender A loans $60,000 and Lender B loans $40,000 to Borrower C and they both secure their loans with a certain number of shares of Stock D, then, in the event of default, Lender A has the right to 60% of the shares, while Lender B has the right to 40%.
References in periodicals archive ?
Complementary financing options, such as the taxable America Fast Forward Bonds (AFFBs), combined with traditional taxexempt bonds and federal funding, such as the Transportation Infrastruct ure Finance and Innovation Act (TIFI A), would broaden the U.
Salus Capital is a direct originator of secured asset-based loans to the middle market across a variety of industries with additional complementary financing throughout the capital structure.
A complementary contract destined to complementary financing which contains allocated amounts with special destination.
These grants will also be topped up by complementary financing to the tune of $612.
The Polish Ministry of Environment has, on behalf of the city, applied for a complementary financing for sewerage improvement from the new European Union Instrument of Structural Policies for Pre-Accession programme.
Salus Capital is a provider of senior secured asset-based loans to the small and middle-market across a variety of industries with additional complementary financing throughout the capital structure.
By working closely with their talented management team, we were able to develop a complementary financing solution that will help the company facilitate its delivery of products and technologies to the market," said Anthony Storino, Senior Managing Director, GE Healthcare Financial Services' life science finance group.
Backed with private equity funding and staffed by practitioners with a wealth of complementary financing and consultancy experience, the firm serves clients internationally from offices in London, Montreal, Munich and Paris.
Creative system and network designs with complementary financing enabled customers to improve operations with disaster recovery, server consolidation, mobile workforce solutions, and Web services.
The financing consists of a $50 million direct loan from the ADB, a $20 million co financing facility arranged under the ADB's Complementary Financing Scheme and a $70 million facility guaranteed by the ADB pursuant to its Partial Risk Guarantee program.
InnovFin consists of a series of integrated and complementary financing tools and advisory services covering the entire value chain of research and innovation in order to support investments from the smallest to the largest enterprise.
The program also features complementary financing of $39.
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