This is the 4th installment of Billboard Insider’s series on out of home lenders. We have previously featured Alerus Financial, Stark Capital Solutions and Yesco Financial. Today we profile Verde Outdoor Capital.
Lender: Verde Outdoor Capital
Transactions Sought: $1 million and more.
Address: 1720 W. Rio Salado Pkwy Ste A Tempe, AZ 85281
Email: rickard.strom@verdeoutdoorcapital.com
Phone: 602-284-4369
Verde Outdoor Capital provides loans to out-of-home companies in the U.S. Billboard Insider talked with Rickard Strom, Verde Outdoor Capital’s President, about the company’s activities.
Talk about Verde Outdoor Capital’s history and how it got involved in out of home lending?
I’ve been a commercial lender for 20 years. I have always liked helping small to medium sized businesses with their financing needs. I have over 10 years of experience lending to billboard operators while at Metro Phoenix Bank where I built the out of home lending platform. In January of 2021 I created Verde Outdoor Capital, LLC with Ernie Garcia III. He liked the idea of creating a privately owned finance company to provide capital solutions to the out of home industry and he provides 100% of VOC loan funds. We are located in Tempe, Arizona, and lend nationwide in the U.S. and Canada.
What’s new at Verde Outdoor Capital over the past year?
We’ve gained several new customers, increasing our portfolio to over 125MM, invested in more sophisticated software for loan closing and servicing.
What size lending transactions do you seek?
We are seeking loans $1MM or greater in size.
How big is your loan portfolio?
Over $125MM
What about pricing?
Our pricing is on average 3% over WSJ Prime. The rate is adjusted quarterly.
Do you require a third-party appraisal?:
We do not! We use our combined years of experience and expertise to complete an internal valuation.
What trends are you seeing in the out of home markets?:
There is definitely more buzz around new acquisitions. The M/A market is still challenged by the high cost of funds, but I think buyers have a more positive outlook where we will see a decrease in interest rates in the not too far future. When the interest rates decrease, we should start seeing an increase in asset valuations again. So there might be some value to acquiring assets today even though rates are high. My portfolio is still healthy with no delinquencies, so the independents have managed to service its debt through a combination of keeping the leverage at acceptable levels along with increasing its cash flow available for debt service. Financing activity should pick up over the next 12-24 months when rates drop.
To learn more about how Verde can help your company grow contact Rickard Strom, 602-284-4369, rickard.strom@verdeoutdoorcapital.com
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