Fiduciam grants Santa working capital loan to overcome global supply chain crisis

Fiduciam has provided Saint Nicholas of Myra (commonly known as Santa Claus) with a bridging loan to ensure that Mr Claus and his team can deliver on their Christmas promises. The loan is secured over the well-known North Pole assets, including a factory, several warehouses, and the reindeer grazing land but excluding the Claus’ personal residence.

The transaction presented a number of complex issues, but the Fiduciam team was determined to provide a solution that would not only save the jobs of many elves at the North Pole but also Christmas itself.

As a result of the COVID-19 pandemic the Claus Group has suffered from significant elf-labour shortages. The toy-manufacturing arm has been further impacted by the continuing global supply chain crisis and inflationary pressures. Mr Claus therefore decided it was time to leverage his assets to raise enough working capital to meet their upcoming commitments to children around the world.

There were numerous challenges faced by the dedicated team pushing the case forward. A key mission was to convince the Fiduciam credit committee sceptics of the borrower’s existence. Nonetheless, the team navigated a successful site visit to the North Pole and confirmed Santa Claus’ indisputable existence.

There were other issues, such as valuing the miniature elf workstations, finding appropriate comparables to the magic-fuelled assets, conducting AML and KYC checks on the elusive Claus family, and understanding how the group actually makes money.

Despite these seemingly deal-breaking factors (and Omicron’s best efforts), the Fiduciam team is pleased to confirm that Christmas will come again this year.

Louisa Willoughby, who case managed the deal, added: “We received the loan application on the 1st December and we turned it around in just three weeks. There were numerous challenges, not least getting to the North Pole and avoiding hypothermia in the process.”

Marc Morris, who underwrote the loan, added: “I would like to give my special thanks to James Goff of Keystone Law and Neil Logan of Wilson Nesbitt for assisting with the complex jurisdictional issues and the inherent problems of taking a charge over reindeer and sleighs. Our valuers, Darren Fitzsimons of LSH and Rob Cohen of MJ, also went out of their way to put a vacant possession value on the North Pole property, which we all hope will never be relevant.”

Johan Groothaert, who received the call from Santa as CEO of Fiduciam, added: “In a rapidly changing world, Santa’s kindness is an everlasting value that brings us all together at this wonderful time of year. May Santa’s magic help us overcome the challenges of today and inspire us with joyful hopes and dreams for tomorrow.”

Published: 21 December 2021