C Pragma Credit
Credit File · Sourcing to Tokenization

One record. Fourteen stages. One connected lifecycle.

Every private credit deal moves through the same lifecycle spine — sourcing, underwriting, investment committee approval, and monitoring, and on to tokenized pool shares. Follow a deal through each stage the way a credit team actually works it.

Walk the deal → Illustrative deal: Meridian Fabrication Co. · $35M facility
4
Origination-to-monitoring phases, one record
14
Lifecycle stages, sourcing to tokenization
4.2x
Illustrative senior leverage at close
Credit Journey

How a deal earns its place in the portfolio.

Scroll through the stages in order — this is the path a direct-lending deal takes from initial sourcing to a funded, monitored facility, and on to tokenized pool shares. Each stage carries its own evidence: what's collected, what's tested, and where handoffs still create friction today.

STAGE 01Origination · Sourcing

Sourcing

The deal enters the pipeline through an origination channel — direct outreach, a sponsor relationship, or an intermediary — with a preliminary ask and use of proceeds, before any formal review begins.

  • Origination channel identified (direct, sponsor-led, intermediary)
  • Borrower and sponsor identity captured
  • Preliminary facility size and use of proceeds logged
  • Deal opened in the pipeline, pending materials
Status: Deal sourced, awaiting CIM and financials
SOURCED
Pipeline#PC-40217
BorrowerMeridian Fabrication Co.
Origination channelSponsor-led
Requested facility$35,000,000
Materials outstandingCIM, financials
STAGE 02Origination · Screening

Screening

The deal is screened against active strategy mandates — sizing, sector, leverage, and structure fit determine whether it moves forward before any diligence spend.

  • Deal screened against fund investment criteria
  • Sector and sizing fit confirmed against strategy mandate
  • Preliminary leverage and pricing sanity-checked
  • Deal cleared to preliminary diligence
Status: Cleared screening, fits direct lending mandate
CLEARED
ScreeningStrategy fit
StrategySenior secured direct lending
Sizing fitWithin $20–50M range
SectorIndustrial manufacturing
Leverage (indicative)4.0–4.5x
STAGE 03Origination · Preliminary Diligence

NDA & Preliminary Diligence

A confidentiality agreement is signed and the CIM, revenue history, and preliminary financials come in — pulled from data rooms, CRM, and email with no single reliable source until now.

  • Non-disclosure agreement executed
  • CIM and management presentation received
  • Revenue history and projections compiled
  • Missing or inconsistent data flagged for follow-up
Status: Revenue gaps identified — follow-up requested
FLAGGED
Preliminary diligenceCIM review
NDA statusExecuted
Revenue (LTM)$58,400,000
Revenue evidence2 of 3 years confirmed
EBITDA (LTM, preliminary)$9,200,000
STAGE 04Origination · IOI

Indication of Interest

A non-binding IOI sets preliminary pricing and structure — the opening position competing lenders use to win the mandate before formal underwriting begins.

  • Preliminary pricing and structure proposed
  • Non-binding IOI issued to sponsor
  • Competing lender proposals benchmarked
  • Lender selected to proceed to underwriting
Status: IOI accepted, proceeding to underwriting
ACCEPTED
Indication of interestNon-binding
Competing lenders2
Indicative structureSenior secured term loan
Indicative pricingSOFR + 550
IOI statusAccepted
STAGE 05Underwriting · Financial Analysis

Financial Analysis

Financials are spread and normalized, and the credit team builds its base-case model — adjusting for one-time items and testing debt service through a downside case.

  • Financials spread and normalized (QoE adjustments applied)
  • Base-case and downside financial model built
  • Historical and projected leverage calculated
  • Model routed for credit analysis
Status: Base-case model complete
MODELED
Financial analysisBase case
EBITDA (adjusted, LTM)$9,600,000
Leverage (proposed)4.2x
Interest coverage2.8x
Model statusBase case complete
STAGE 06Underwriting · Risk Rating

Credit Analysis & Risk Rating

Borrower and facility risk ratings are assigned on the fund's internal scale, translating the credit story into a score comparable against the rest of the portfolio.

  • Borrower risk rating assigned
  • Facility risk rating assigned
  • Industry and cyclicality risk factors scored
  • Rating benchmarked against portfolio comparables
Status: Risk ratings assigned, within portfolio norms
RATED
Risk ratingInternal scale
Borrower ratingBB
Facility ratingBB+
Industry riskModerate
Portfolio comparables6 similar credits
STAGE 07Underwriting · Due Diligence

Due Diligence

Legal, financial, and operational diligence run in parallel — a QoE report, legal opinion, management references, and a site visit all feed the credit memo before it goes to committee.

  • Quality of earnings (QoE) report reviewed
  • Legal diligence and corporate structure confirmed
  • Management references and site visit completed
  • Credit memo drafted for investment committee
Status: Diligence complete, memo drafted
COMPLETE
Due diligenceCredit memo
QoE findingsNo material adjustments
Legal diligenceClean corporate structure
Site visitCompleted
Credit memo statusDrafted
STAGE 08Underwriting · Structuring

Structuring & Term Sheet

Pricing, covenants, and collateral terms get negotiated into a term sheet — balancing sponsor asks against the fund's risk appetite before the deal goes to committee for final sign-off.

  • Pricing and covenant package negotiated
  • Collateral package and guarantees confirmed
  • Term sheet issued to sponsor
  • Term sheet countersigned
Status: Term sheet executed
EXECUTED
StructuringTerm sheet
PricingSOFR + 550, 1.00% floor
Tenor5 years
CovenantsNet leverage ≤ 4.5x
Term sheetExecuted
STAGE 09Underwriting · IC Approval

Investment Committee Approval

The credit memo goes to the investment committee for final sign-off — voting members weigh the risk rating, structure, and portfolio fit before releasing the facility to close.

  • Credit memo presented to investment committee
  • Voting members' questions and conditions addressed
  • IC vote recorded
  • Approval conditions logged for closing
Status: Presented to IC, decision pending
PENDING IC
IC approvalVoting record
IC votePending
Approval conditions1 pending
Target close date3 weeks out
Memo versionFinal
STAGE 10Servicing · Closing

Documentation & Closing

Legal counsel drafts the definitive credit agreement, conditions precedent get cleared, and the facility funds — the last step where a clean underwrite can still stall on paperwork.

  • Definitive credit agreement drafted and negotiated
  • Conditions precedent satisfied
  • Facility booked in the servicing system
  • Closing funded
Status: Closed and funded
FUNDED
ClosingCredit agreement
Closing dateConfirmed
Conditions precedent0 outstanding
Facility bookedYes
Funding amount$35,000,000
STAGE 11Servicing · Monitoring

Portfolio Monitoring

Covenant compliance certificates, financial reporting, and periodic credit reviews keep the position current — the same cadence that feeds the fund's quarterly reporting to investors.

  • Covenant compliance certificates reviewed
  • Quarterly and annual financial reporting received
  • Periodic credit review completed
  • Watchlist status reassessed
Status: In compliance, no covenant breaches
IN COMPLIANCE
MonitoringQuarterly review
Covenant complianceIn compliance
Watchlist statusNot on watchlist
Last reviewQuarterly, current
Open exceptions0
STAGE 12Tokenization · Mint

Mint

With the loan record connected and monitored, a tokenized share class can be minted directly against it — no bilateral settlement, no separate ledger to reconcile.

  • Eligible facility confirmed for tokenized issuance
  • Token parameters set: supply, par value
  • Investor eligibility and KYC/AML checks run
  • Token minted against the connected loan record
Status: Conceptual application — not yet in production
MINTED (CONCEPT)
TokenizationIllustrative
Token standardERC-20 (illustrative)
Par value per token$1,000
Facility tokenized$35,000,000
StatusConceptual, not measured
STAGE 13Tokenization · Pool

Pool

Minted shares are grouped into a diversified pool, giving investors exposure across facilities instead of a single-name concentration — with pool composition traceable back to each underlying record.

  • Facility added to an eligible pool
  • Pool concentration limits checked
  • Pool-level cash flows mapped to underlying loans
  • Pool composition published to investors
Status: Conceptual application — not yet in production
POOLED (CONCEPT)
TokenizationIllustrative
PoolDirect Lending Pool III
Pool facilities14
Concentration limit8% single-name max
StatusConceptual, not measured
STAGE 14Tokenization · Issue

Tokenization — can the record become a tradable share?

Pool shares are issued as tokenized instruments investors can hold, transfer, and reconcile against the same connected record — collapsing bilateral settlement into a single shared system.

  • Pool shares issued as tokenized instruments
  • Transfer restrictions and compliance rules encoded
  • Investor reconciliation runs against the connected record
  • Position statements published to investors
Status: Conceptual application — not yet in production
ISSUED (CONCEPT)
TokenizationIllustrative
InstrumentTokenized pool share
Investors onboarded22
Reconciliation sourceConnected loan record
StatusConceptual, not measured
Underneath every stage

The four capabilities every stage draws on.

Regardless of deal size or structure, every stage above leans on one of four connected capabilities. This is the layer that turns fourteen separate stages into one lifecycle instead of fourteen handoffs.

S

Shared data foundation

One loan record carries evidence forward instead of restarting at every handoff.

W

Workflow & exceptions

Exceptions are routed and owned instead of tracked through disconnected email threads.

A

Approvals & audit

Decision status, evidence, and approval history stay visible end to end.

M

Monitoring & reporting

Reviews run from connected data instead of rebuilding borrower context every cycle.

Every deal moves through this spine, in order.

The stages don't change — what changes is how much friction there is between them, and whether the record carries forward into tokenized pool shares. That's the gap Pragma Credit is built to close.

Map your workflow → Review the journey again ↑