C Pragma Credit
Credit File · Request to Tokenization

One record. Fourteen stages. One connected lifecycle.

Every private credit deal moves through the same lifecycle spine — origination, underwriting, approvals, 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
Connected capabilities, shared record
14
Lifecycle stages across four phases
18.2
Peak reported hrs/wk on 2L underwriting
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 an initial loan request 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 01Onboarding · Intake

Loan Request

The deal enters the system as a name, an ask, and a use of proceeds — a sponsor or borrower submits a loan request well before there's a governed record behind it.

  • Borrower and sponsor identity captured
  • Requested facility size and use of proceeds logged
  • Initial revenue and profitability figures requested
  • Deal opened as an intake record, pending documentation
Status: Request logged, revenue evidence outstanding
RECEIVED
Deal file#PC-40217
BorrowerMeridian Fabrication Co.
Requested facility$35,000,000
Use of proceedsGrowth capital & refi
Docs outstanding6 items
STAGE 02Onboarding · Sourcing

Origination & Sourcing — where did this deal come from?

The originating team compiles revenue history, documents, and sourcing context by hand — pulling from eCRM, portfolio databases, and email threads with no single reliable source of truth.

  • Revenue history and projections compiled
  • Deal documents downloaded and organized
  • Sourcing channel logged (direct, sponsor-led, club)
  • Missing or inconsistent data flagged for outreach
Status: Revenue gaps identified — manual outreach required
FLAGGED
OriginationRevenue file
Sourcing channelSponsor-led
Revenue (LTM)$58,400,000
Revenue evidence2 of 3 years confirmed
Re-entry pointseCRM, CH, pipeline
STAGE 03Onboarding · Screening

Preliminary Screening

The deal is screened against active credit strategies and desks — sizing, sector, and structure fit determine which team picks it up next.

  • Deal screened against eligible credit strategies
  • Sector and sizing fit checked against desk mandates
  • Preliminary indication of interest logged
  • Deal routed to the originating desk for mandate selection
Status: Cleared screening, routed to direct lending desk
SCREENED
ScreeningStrategy fit
Screened strategySenior secured direct lending
Sizing fitWithin $20–50M range
SectorIndustrial manufacturing
Desk assignedDirect Lending II
STAGE 04Onboarding · Mandate

Mandate Selection

Competing desks and structures make their case for the mandate. Clearinghouse preparation and early scenario work happen here, running on a fixed weekly cadence that doesn't flex around live deal deadlines.

  • Preliminary term indications prepared
  • Clearinghouse submission drafted
  • Early profitability scenarios run
  • Winning desk and structure selected
Status: Direct lending structure selected
SELECTED
Mandate SelectionClearinghouse
Competing structures2
Selected structureSenior secured term loan
Indicative pricingSOFR + 550
Clearinghouse cycleWeekly (fixed)
STAGE 05Deal Status · Analysis

Financial Analysis

The first-line team drafts the business proposal memo and spreads financials — long, repetitive templates that restart context the desk already had from origination.

  • Financials spread and normalized
  • First-line business proposal memo drafted
  • Profitability scenarios modeled
  • Memo routed for ratings
Status: Memo drafted, spreads complete
DRAFTED
Financials1L memo
EBITDA (LTM)$9,200,000
Leverage (proposed)4.2x
Memo statusFirst-line draft complete
Drafting load9.0 hrs/wk
STAGE 06Deal Status · Ratings

Ratings

Borrower and facility ratings are assigned. Submission errors and CID/IPID mismatches get tracked over email, with no central dashboard for what's outstanding.

  • Borrower rating assigned
  • Facility rating assigned
  • CID mapped under the correct IPID
  • Re-rating triggers checked against recent events
Status: CID/IPID mismatch under correction
RATED
RatingsInternal scale
Borrower ratingBB
Facility ratingBB+
CID / IPID status1 mismatch flagged
Re-rating cadenceEvent-driven
STAGE 07Deal Status · Underwriting

Underwriting & Due Diligence — does the record hold up twice?

Second-line underwriting runs in parallel with the first-line memo, often starting before Clearinghouse confirms the deal will even proceed — duplicating evidence gathering and write-up along the way.

  • Second-line credit memo drafted and scrubbed
  • Memo aligned against the first-line proposal
  • Financials independently spread
  • Management diligence and site visit completed
Status: 2L memo aligned, diligence complete
ALIGNED
Underwriting2L memo
2L memo statusFinalized
Alignment to 1L proposalConfirmed
Diligence load18.2 hrs/wk
Open diligence items0
STAGE 08Deal Status · Structuring

Structuring & Term Sheet Negotiation

Covenants, pricing, and collateral terms get negotiated into a term sheet — toggling constantly between duplicate 1LOD and 2LOD documents to keep both sides in sync.

  • 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 09Deal Status · Approvals

Credit Approvals — who signs, and how long does it take?

The file moves through CARS for authority routing and CAO review. The AIMS ticket gets generated before approval actually lands, and the full cycle adds at least three weeks after credit sign-off.

  • CARS ticket opened and routed
  • Authority level confirmed against facility size
  • CAO review completed
  • Excess and exception management cleared
Status: Routed to CAO, decision pending
PENDING APPROVAL
ApprovalsCARS / AIMS
Approval authorityCAO (facility > $25M)
CARS ticketAIMS-88231
Approval cycle elapsed3.1 weeks
Exceptions logged1 pending
STAGE 10Loan Status · Closing

Documentation & Closing

Legal documentation, commitment, and MCU setup follow approval — and this is where clean files still fail, with slow shared-drive uploads and post-approval modifications adding administrative volume.

  • Loan documents drafted and negotiated
  • Commitment letter issued
  • Facility set up in MCU
  • Conditions precedent satisfied, closing funded
Status: Closed and funded
FUNDED
ClosingMCU record
Closing dateConfirmed
Facility live in MCUYes
Conditions precedent0 outstanding
Post-closing admin items2 routine
STAGE 11Loan Status · Monitoring

Monitoring — does the same context get rebuilt every cycle?

Annual reviews run like new-credit underwritings, rebuilding borrower context from CARS, AIMS, Nexen, and CapIQ by hand — while covenant and watchlist alerts arrive as separate emails from separate systems.

  • Covenant compliance certificates reviewed
  • Annual and periodic credit reviews completed
  • Watchlist status reassessed
  • Exceptions routed to an owner for resolution
Status: In compliance, no covenant breaches
IN COMPLIANCE
MonitoringAnnual review
Covenant complianceIn compliance
Watchlist statusNot on watchlist
Last reviewAnnual, 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 ↑