Amortizing Mini Perm Financing
A type of mini perm financing ( www.practicallaw.com/6-500-2091) that eliminates refinancing risk by requiring that the bond (or other form of take out financing) be incurred at the same time as the commercial loans. In this structure, the commercial loans are repaid first (typically within five to seven years). This is in contrast to:
Hard mini perm financing ( www.practicallaw.com/4-500-2214) in which the commercial loans are incurred first with the requirement that they be refinanced within five or seven years.
Soft mini perm financing ( www.practicallaw.com/1-500-2215) that includes terms that do not require, but which incentivize, refinancing.