⚡🤖🏀 $18 Billion in Epic Loan Deals: Plug Power $1.6B, CoreWeave $7.5B, EBC $108M

Good Morning Everyone

This week in Deals:

$3.23 billion in top 10 CRE deals
$14.57 billion in top 10 Growth Cap deals
$189 million in top 8 ABL deals

Top CRE Lenders
US Dept of Energy, Zions Bancorporation, National Bank of Canada, Royal Bank of Canada, Sumitomo Mitsui Trust Bank, Canadian Imperial Bank of Commerce, KKR, Deutsche Bank, KSL Capital Partners, Bank of America, First Citizens Bank & Bank United, QuadReal Property Group, Madison Realty & Unity Capital, Wells Fargo

Top Growth Cap Lenders
Blackstone, Coatue, Carlyle, BlackRock, Magnetar, Blue Owl Capital and Ares Capital Corp, Wells Fargo, Merrill Lynch, Deutsche Bank, JP Morgan, RBC, Oaktree Capital Management, OMERS Life Sciences, Sixth Street, FrontWell Capital Partners, Silicon Valley Bank, Hercules Capital, i80 Group, MidCap Financial, Great Rock

Top ABL Lenders
Eclipse Business Capital, Huntington Business Credit, eCapital, BH Properties, Aequum Capital, Pathward

🌆Top Weekly CRE Deals

• DOE awards Plug Power a $1.7B conditional loan guarantee for six clean hydrogen factories Read

• BrightNight and Cordelio Power close $414M project financing for 300 MW Box Canyon in Arizona Read

• KKR provides $220M refi for Ares’ 9-building industrial portfolio Read

• Deutsche Bank and KSL Partners secure $185M refi for Miami hotel Read

• Irvine Company lands $150M SoCal office refi Read

• First Citizens Bank leads $150M financing for battery energy storage projects Read

• QuadReal lends $110M for Prospect Heights apartments project Read

• Madison Realty Capital leads $100M financing for Kushner’s Jersey Shore project Read

• CBRE provides $100M recapitalization for a 36-property industrial service facility portfolio Read

• Wells Fargo provides $90M acquisition loan for Two Bridges affordable complex Read

Summary
Last week, lending activity was strong across the commercial real estate and clean energy sectors. Lenders targeted industrial properties, hotels, and multifamily developments in high-growth markets, extending capital to established sponsors with solid track records. Notable trends included joint venture structures and institutional investor participation, reflecting confidence in the long-term potential of these assets. The top three highest dollar loans were a $1.66 billion conditional loan guarantee to Plug Power, a $414 million construction credit facility for BrightNight and Cordelio Power's Box Canyon solar project in Arizona, and a $220 million refinance for Ares Industrial Real Estate Income Trust's 2.1 million-square-foot industrial portfolio.

Lenders concentrated on projects in major logistics hubs, growing metropolitan areas, and strategic locations for clean energy production. The week's most prominent activities included government-backed loans for clean energy infrastructure, refinancings, construction loans for new developments, and acquisitions of existing properties. Economic analysis indicates that the commercial real estate market remains resilient, with strong demand for industrial space, luxury apartments, and hotels in strategic locations.

The market saw diverse property types securing financing, from hospitality and multifamily to industrial and senior living. Lenders ranged from major banks to credit funds and insurance companies, showcasing a continued appetite for CRE lending despite the challenging environment. The top lender was the U.S. Department of Energy, providing Plug Power a $1.66 billion conditional loan guarantee for developing clean hydrogen production facilities. Government-backed lending for clean energy infrastructure was the most prominent activity, followed by refinancing several large transactions involving clean energy infrastructure projects, industrial assets, hotels, and mixed-use developments with residential and retail components. Significant activity occurred in cities targeted for clean hydrogen production in upstate New York and other asset types in Los Angeles, Miami, the New York metro area, and Long Branch, New Jersey.

Key Insights

• Through loans and grants, government support plays a crucial role in accelerating the development of clean energy infrastructure, particularly in the hydrogen and solar sectors.

• Institutional investors are increasingly partnering with experienced sponsors through joint venture structures to capitalize on opportunities in the commercial real estate market.

• Lenders are prioritizing projects in high-growth markets, particularly in the industrial, multifamily, and hospitality sectors, as well as strategic locations for clean energy production.

Loan Structures
Last week's loans featured a mix of short-term and long-term tenors. The construction loans for the Box Canyon solar project and EMP Capital's multifamily project in Brooklyn likely have tenors of 3-5 years. In contrast, the refinancing loans for the East Miami hotel, Westwood Gateway II office tower, and Ares Industrial Real Estate Income Trust's portfolio may have longer tenors of 7-10 years. Loan structures included senior loans, mezzanine financing, and government-backed conditional loans.


Winners:

• Companies in the hydrogen, solar, and other clean energy sectors

• Renewable Energy Developers

• Government Lending Programs

• Deutsche Bank & Madison Realty
  

Losers:

• Fossil Fuel Companies

• Office Property owners with assets in markets facing oversupply or reduced demand

• Lenders with Significant Fossil Fuel Exposure

• Regional Banks

💡 Top Markets/Opportunities:

CRE Lenders Focus:
1) Renewable energy developers and their suppliers
2) Industrial REITs and their tenants in the logistics, distribution, and manufacturing sectors
3) Experienced multifamily sponsors and their contractors in high-growth markets
4) Luxury hotel operators and their suppliers in popular tourist destinations

CRE Developers Focus:
1) Industrial properties in major logistics hubs and growth markets
2) Renewable energy companies to develop clean energy infrastructure projects

CRE Investors Focus:
1) Luxury hotels in popular tourist destinations
2) Companies that provide clean energy solutions

CRE Brokers Focus:
1) Experienced multifamily sponsors looking to finance new developments or refinance existing properties
2) Renewable energy developers seeking financing for their projects

💸Top Weekly Growth Capital Deals

• CoreWeave raises $7.5B in debt led by Blackstone for AI infrastructure Read

• Squarespace secures $2.65B private credit financing for take-private deal Read

• Gray Television announces $1.6B refinancing process and increase to its revolving credit facilityP97 Networks secures $10M line of credit from Wells Fargo Read

• Stonebriar Finance Holding LLC increases its primary credit facilities significantly Read

• Verona Pharma secures $650M strategic financing with Oaktree and OMERS Read

• Apellis Pharmaceuticals refinances debt with up to $475M non-dilutive credit facility from Sixth Street Read

• Summit Wash Holdings receives $200M+ in debt financing Read

• Harness grabs $150M line of credit after surpassing $100M in ARR Read

• Yendo secures $150M in debt financing from i80 Group Read

• MidCap Financial and Great Rock Capital provide $140M credit facility to housewares company Read

Top Weekly ABL Deals

• Eclipse Business Capital provides $105.8M senior secured credit facility to sporting goods manufacturer Read

• Huntington Business Credit closes $38M in new credit facilities with Royal Chemical Company Read

• eCapital secures $18M asset-based facility for commercial linen company Read

• BH Properties offers $10M loan to ‘Graffiti Towers’ owner Read

• Aequum Capital provides $9.3M in credit facilities to aerospace and defense manufacturing company Read

• Pathward lends $8M to PVC and thermoplastics manufacturer for working capital Read

• Pathward lends $4M to growing arts and crafts company to finance overseas orders Read

• Pathward lends $3M to baking products and packaging manufacturer for working capital Read

Summary

Last week witnessed significant financing activity across various sectors. CoreWeave, an AI infrastructure startup, raised a substantial $7.5 billion in debt to expand its cloud data centers, following a $1.1 billion equity round that valued the company at $19 billion. Squarespace secured $2.65 billion in private credit to support its $6.9 billion take-private deal by Permira. Gray Television initiated a $1.6 billion refinancing process for its term loan and senior notes. Stonebriar completed a $1.5 billion increase and extension of its credit facilities. Verona Pharma entered into agreements providing access to up to $650 million from Oaktree and OMERS.

The most prominent financing activity appears to be the significant investments in AI infrastructure and technology. Private credit financing for major transactions, such as Squarespace's $6.9 billion take-private, also emerges as a notable trend, highlighting the role of alternative lending in facilitating large-scale deals. Blackstone and Royal Bank of Canada emerged as the top lenders, participating in two major transactions: CoreWeave and Squarespace financings for Blackstone and Gray Television and Stonebriar loans for RBC. Blackstone's and RBC’s involvement highlights its capability to provide substantial financing solutions across diverse sectors, including AI infrastructure, financials, media, and e-commerce. Financing activities spanned multiple cities and regions, such as New York City, Los Angeles, and the Midwest. The properties in focus ranged from data centers to mixed-use development projects.

Key Insights

• AI infrastructure and computing power are seeing massive investments to meet the demand sparked by advancements in AI models and capabilities

• Private credit is playing a significant role in financing major transactions like take-privates and refinancings

• Companies are increasing and extending their credit facilities to position themselves for growth and to provide flexible financing solutions to customers
  

Loan Structures

Revolving credit facilities and term loans were prevalent last week, with maturities ranging from a few years to up to 7 years, exemplified by Verona Pharma's debt facility maturing in 2030. Some facilities were structured as multi-year revolving lines of credit, offering flexibility for ongoing working capital needs. These facilities often combined revolving credit and term loans, such as Aequum Capital’s $5 million revolver and $4 million term loan to a client. In asset-based lending (ABL), facilities were secured by accounts receivable, inventory, and other assets, like Eclipse Business Capital's $105.8 million loan to a sporting goods manufacturer.

Winners:

• Firms providing AI infrastructure, software, and services

• PE firms

• Private credit providers

• Lenders specializing in AI and technology

Losers:

• Traditional public cloud providers

• Firms lacking a clear AI strategy

• Traditional banks with strict lending criteria

• Lenders lagging in AI and technology expertise

💡 Top Markets/Opportunities:
Asset-Based/Growth Cap Lenders Focus 
1) AI infrastructure and technology companies
2) Asset-based lending for manufacturing and commercial linen services
3) Companies in the software development and fintech sectors
4) Companies in need of debtor-in-possession financing (DIP)

Family Offices Focus
1) AI-powered fintech startups that are revolutionizing the lending landscape
2) E-commerce sector
3) The automotive aftermarket industry, including car wash businesses

Private Equity Firms Focus
1) Software companies that provide essential tools for businesses
2) Specialty chemicals industry
3) The media and entertainment industry

Brokers Focus
1) Connect manufacturing companies with asset-based lenders who can provide flexible financing solutions
2) Businesses in the agriculture and food processing industries
3) Companies in the construction and building materials industry may seek financing for inventory and equipment purchase

New Loan Programs

• Panorama Mortgage Group launches a 1% down payment loan program Read

😲 Didn’t see that one coming

• KidKraft files for Chapter 11 bankruptcy Read

• Brandywine breached: Philly CRE firm falls victim to cybersecurity hack Read

• Chiquita loses insurance appeal in paramilitary financing case Read

• Former Trump International Hotel in DC headed to foreclosure auction Read

• Equitable Plaza’s $88M office CMBS loan sent to special servicing Read

• Destry Allyn Spielberg’s indie feature debut faces financing hurdles and owes vendors Read

• Foxtrot files for bankruptcy Read

• Crypto post-mortem: Pump.Fun exploited for $2M Read

• US judge approves Genesis Global Capital's Chapter 11 repayment plan Read

• CFPB sues fintech for deceptive practices Read

ADVERTISE WITH US AND REACH OVER 6,030 SUBSCRIBERS 

Our newsletter is read by hundreds of finance professionals, executives, brokers, agents, investment bankers, CPAs, lenders, and business owners worldwide.

🔄 HELP SHARE OUR NEWSLETTER WITH YOUR FRIENDS AND NETWORK

If you found value in our newsletter today, please share us with your friends and colleagues. In return, we enroll you in our April prize drawing of airfare for two to any 23 vacation destinations in the continental United States. Plus, you get a free entry for every subscriber who joins our newsletter using your unique link below.

We would love your feedback on what information you want more of. If you have anything interesting to share or a deal that we can help with, reach out to us by sending us an email at [email protected]. Thank you for reading, and enjoy the rest of your week.

Lastly, no content provided by Bridge Loan Guy or Time is Money should be considered tax, investing, or financial advice. This email and any other content we provide is for entertainment and education purposes only. We do not claim to provide tax, investment, financial, or other legal advice. Any content provided by Bridge Loan Guy or Time is Money is the personal opinion of our owners and/or staff – you should always conduct your own research.