Backshop lets you accurately model the relationships and amounts secured by each borrower in your deal.
Go to ownership hierarchy page
1. Click the Equity tab.
2. Click the Add Individual or Entity to Deal link.
Add new borrower to note
You can add borrowers to your note in two ways:
1. Choose from existing borrower list
1A. If desired, use search form to search by last name or organization name. Hit Enter button or click “Search by Borrower Org Name or Last Name” link to execute search. Matching borrowers will be listed below (1). Click name of desired borrower.
2. Add new borrower
- Choose borrower type in menu.
- Click Add new link.
Enter borrower information
Whether you choose a borrower from the existing list or add a new borrower, Backshop takes you to the Borrower Information page.
1. Start with required information: ownership percent and entity name. If you choose from the list, borrower name will already be filled in.
- The information in the bottom section applies to the borrower. The information in the top section is unique to the borrower’s role with this specific note.
- Enter as much information as you like. You can always return to this form.
- Track equity contributions at the upper right of the page.
2. Click the Update button at the top or bottom of the borrower information module.
- Add as many borrowers as you need to complete the note-level borrowership. That is, to account for 100 percent of the note.
Set up borrower structure
1. After you have entered your note-level borrowers, click the Equity tab.
- This page shows your ownership hierarchy. In this example, ABC LLP is a parent of Boston Properties, and Boston Properties is a parent of BP REIT.
- To make one of your note-level borrowers a parent with one or more child borrowers:
2. Click the borrower’s name.
This brings up the borrower information page.
1. Click the Add Parent Ownership Level link in the Actions bar.
After you click the Add Parent Ownership Level link, you are prompted to select or add a borrower (See Add new borrower to note, above). After you’ve selected the child borrower, Backshop takes you to the Borrower Ownership Hierarchy page.
1. Enter the “Owns” percentage.
2. Click Update.
This returns you to the Borrower Structure page.
Add parent and child levels until your deal structure is fully reflected. In this example, Centro Watt America REIT 5 Inc. needs additional child borrower(s) to account for the remaining 50% of ownership.
