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$500,000 Student Loan Financing - Instituto Marang...
Offering short link
Raise Details
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Gross Offering$500,000 USD
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Available Units3.50
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Minimum Investment$50,000 USD
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Maximum Investment$500,000 USD
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Open DateJun 23,2023
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Closing DateJun 23,2025
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Investment TypeOther
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Maturity24 months
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Real Estate UseOffice
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Maturity End Date
Type
| Type | Number of Units | Available Units | Cost per Unit | Gross Offering | Annual Yield | Term |
|---|---|---|---|---|---|---|
| Simple Interest | 5.00 | 3.50 | $100,000.00 USD | $500,000.00 USD | 30.00% | 24 months |
| Totals | 5.00 | 3.50 | $500,000.00 USD |
Executive Summary
Overview. Chesterfield Faring Ltd. (“Chesterfield”) is providing financing of a 30.0% Simple Interest $500,000 loan (the “Loan”) secured by $850,000 of student loans (“Student Loans”) owned by Istituto Marangoni (the “School”). The School has an inventory over $5.0 million of Student Loans so Chesterfield can choose its own Student Loans as collateral for the Loan.
Tremendous Growth. Enrollment in the School has grown from 136 students in 2018 to 656 in 2022. Just from 2021 to 2022, the Student enrolment grew from 429 to 656 or a 52.91% increase in one year. The School has grown the student base and revenues almost 5X since 2018 inception. That growth is expected to increase after the school obtains educational visas for non-American students. The market is huge in Latin America from both Argentina and Brazil. Marketing will commence late 2023. It is possible for the student base may grow almost another 50% in 2023.
Use of Proceeds. The School plans to use the funds to obtain licenses from the State of Florida for new in person and on-line courses that is projected to add $1.5 million in gross revenues after two (2) years.
Terms of the Loan. Chesterfield is selling five (5) $100,000 units (“Units”) totaling $500,000. Half Units for $50,000. The total interest is 30.0% per annum with 14.0% per annum paid currently plus 16.0% per annum accruing. Of the 14.0% current income, the School will prepay 6.0% at Closing. The remaining 8.0% annual interest will be paid in equal monthly installments of $666.67 per Unit ($8,000 annually). At the end of Year 1, the School will pay down $150,000 of the Loan to $350,000 of principal. The monthly current income will be $816.67 per Unit. The Loan and Units are paid upon maturity in two (2) years.
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