Mini Perm

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Mini Perm

In construction and project finance, an informal term for debt financing that is payable over three to five years. Generally speaking, a developer accesses mini perm financing to complete the project to the point where it can begin to produce revenue. The developer then uses the revenue to pay off the mini perm.
References in periodicals archive ?
"Soft mini-perms, on the other hand, tend to be longer term bank financings, with tenors of 15 years or more.
"If project bonds are not available as a financing option for the construction phase of a project, they can nonetheless be incorporated as a potential element of a project's financing mix at a later stage through a mini-perm funding structure."
As the committee knows, the resulting exposure from mini-perms and from other commercial real estate lending has placed substantial stress on the banking industry, has been a main contributor to the failure of several large banking institutions, and has led to the merger or acquisition of others.
In particular, they became more willing to finance land acquisition and construction projects and also to provide so-called "mini-perm" loans to carry projects several years beyond construction.
There are many "mini-perms" coming due soon and there is no place to turn for refinancing.
In particular, soft and hard 'mini-perm' structures have come to the fore, with the latter being used to help structure the debt on the $2.1 billion Addur IWPP.