Recent Examples of bridge loan from the Web
The company plans to sell some HK$1 billion of stock to shareholders at a deep discount to current prices and take on as much as HK$990 million in debt, including a one-year, HK$250 million bridge loan carrying an 18% interest rate.
The $270 million loan from Natixis enables Estein to pay off a bridge loan that had been placed earlier on the property.
The first bridge loan for Irma recovery was granted Tuesday Helen and Andy Viola, owners and operators of Viola’s Pizza Pasta & Seafood Restaurant in St. Augustine.
Learn More Due Date The plan was disclosed on the day a bridge loan was set to mature and days after Concordia skipped a $26 million interest payment on Oct. 16.
Mexichem is financing the transaction with a combination of about $300 million in cash, $200 million in short-term debt and a bridge loan that will later be substituted with long-term bonds.
With the Palliser sale, Cenovus has announced about C$2.8 billion in divestitures to help pay off a C$3.6 billion bridge loan used to purchase ConocoPhillips’ Canadian operations in March.
The German government provided Air Berlin a €150 million bridge loan to keep the airline afloat during the busy summer holiday season and ahead of last months’ general elections.
Tower, based in West Reading and formerly known as Reading Health System, used a portion of a $491 million bridge loan to pay Community Health Systems.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bridge loan.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of bridge loan
Financial Definition of BRIDGE LOAN
What It Is
How It Works
To illustrate, suppose a company has been approved for a $1 million loan from a bank. However, this money will not be available for six months, and they are running short on cash. The company could apply for a six-month bridge loan of $50,000 to cover their expenses until the money from the $1 million loan comes through.
Why It Matters
Often, businesses and individuals find themselves in need of fast funding during an interim period while they work out access to larger amounts of funds. The bridge loan essentially "bridges" the gap between when money runs out and when more money will be received.
The cost of bridge loans is often much higher than more traditional financing methods, and they are only meant to be used in special circumstances. If a company must rely on short-term, high-interest financing to continue operations, chances are good that the company is not viable in the long run.
BRIDGE LOAN Defined for English Language Learners
Definition of bridge loan for English Language Learners
: money that a bank lends you for a short period of time until you receive the money that you are getting from another source (such as from selling your house)
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