Why Banks & Borrowers Transact with SECAP

SECAP structures align interests and provide benefit to all parties involved

SECAP Solutions

  • Avoid loan maturity defaults, Borrower disputes or potential for “in-substance” or repossessed classifications
  • Anchor underlying collateral asset value, prevent impairments, create accrual status and generally keep loan in accruing and potentially “performing” risk categories for Bank Partners
  • Provide all necessary management or asset oversight and operating expense funding to help bank or borrower get asset collateral to maximum value in shortest time
  • Provide bank loan curtailment or material principal reduction and escrow full-term debt service for Bank’s existing loan
  • Oversee all work on, or operation of, project collateral, while working to get Bank repaid, returning all remaining value to existing Borrower or split with bank using our unique “Contingent Interest” structure for profit participation

Our Target Markets

Where We Add the Most Value for Bank Partners:

  • Loans that are migrating, but not yet non-accrual
  • Loans approaching borrowing base re-determination, with Borrower inability to curtail
  • Loans approaching maturity with Borrower inability to repay
  • Loans with severely discounted collateral, where time is needed for the market value to appreciate
  • Loans where Borrowers have few repayment options or are adverse to Bank
  • Loans where Borrower oversight and operational asset management, plus capital is necessary to reposition business
  • Non-accrual loans with potential for pending impairment
  • Impaired loans where capital can be unlocked back to GVA if repositioned

Target Asset Classes, Business Sectors and Geographies:

  • Oil, gas, minerals, water and energy sector commodities and peripheral business
  • Upstream, midstream and downstream focused energy business
  • Ancillary energy sector business (servicing, equipment, etc.)
  • Continental United States