🌱🔋 Adani's Deal-Making Green Billion

Good Morning TIM Enthusiasts

Last week's financial market showcased a dynamic interplay among CRE, ABL, and Growth Cap, striking a balance between ambition and prudent strategy. Leading the CRE segment was Blackstone, with a substantial $1 billion CMBS loan, signaling strong confidence in real estate, while the ABL sphere was energized by Genco Shipping & Trading’s $500 million credit facility, underscoring the sector's robustness. On the international front, Adani Green Energy’s $1.36 billion for construction highlighted the expansive reach of global capital. Even as the narrative of cautious optimism played out, lenders adeptly navigated through the currents of growth, sustainability, and occasional defaults, such as Troika Media Group's strategic reorganization. This financial choreography prompts a closer inspection of the players mastering their moves in this complex ballet of finance........in just 5 minutes!

Let’s get into it.

Top Weekly CRE Deals

• Blackstone refinances 109 properties with a $1B CMBS loan: Read

• Macerich secures $710M for Tysons Corner Center, NoVA: Read

• Tishman Speyer obtains $300M for Jersey City skyscraper: Read

• Naftali Group lands $236M for Upper East Side tower project: Read

• USF finalizes Truist Bank loan for new football stadium: Read

• DC affordable housing complex secures $189M financing: Read

• Otera Capital funds $136M for California life sciences facility: Read

• Dwight Mortgage Trust refinances Harlem tower with $100M loan: Read

• Tamares Group secure $97M loan extension for DC office complex: Read

• Prospera Growth Fund secures $96.7M for Utah student housing: Read
  
  Extra, Extra

• Davis Boston’s $73M loan: Read.

• Hudson Companies North Williamsburg’s $28M loan: Read.

• JLL Hampton Inn’s $22.5M loan: Read.

• iCapital’s Dallas $21.6M loan: Read.

• Parkview’s Philadelphia $19.8M loan: Read.

• Wilshire Laguna Beach’s hotel $12.55M loan: Read.

Summary
Last week, the U.S. CRE sector witnessed over $2.5B in significant financings, led by Blackstone's $1B industrial portfolio refinancing across multiple states, Macerich's $710M retail refinance for Tysons Corner Center in Virginia, and Tishman Speyer's $300M construction loan for the mixed-use 55 Hudson project in New Jersey.

Recent mega-loans underscore high demand for industrial, retail, and multifamily properties in key metro areas. Blackstone's strategy to optimize cash flow via below-market rents highlights logistics real estate's stability. Simultaneously, the Tysons Corner mall refinancing signals enduring investor faith in premier retail assets, countering e-commerce shifts, and significant financing for 55 Hudson exemplifies developer trust in urban, mixed-use ventures.

▲ Winners:
◦ Non-bank lenders comfortable with construction risks are poised for increased demand in financing multifamily projects, especially for amenity-rich rentals near transit hubs.
◦ E-commerce giants have the opportunity to modernize supply chains by tapping into strong investor demand for advanced logistics centers, enhancing delivery speed.

▼ Losers:
◦ Hospitality lenders, particularly for convention, airport, and resort hotels, face elevated risks and potential volatility in financing due to sluggish travel recovery and economic pressures.
◦ Mall owners in less affluent areas face tough refinancing and improvement funding challenges due to declining tenancy and sales, compounded by weak property valuations.

Top Weekly ABL and Growth Capital Deals

• Genco Shipping & Trading secures $500M credit facility: Read

• Sidley advises Morgan Stanley on $325M loan for Durango Permian: Read

• HarbourView Equity boosts credit capacity to $300M: Read

• Cross River extends $150M credit to Best Egg for rent program: Read

• CIT Northbridge acts as agent on $75M revolving credit facility: Read

• Trinity Capital provides $45M growth capital to Neurolens: Read

• Mountain Ridge Capital offers $25M credit to gym equipment firm: Read

• Kizik upsizes revolver to $25M with JPMorgan Chase: Read

• Strategic Materials restructures with $23M DIP financing: Read

• First Business Bank funds $22M floorplan credit line: Read

  
  Notables

• First Citizens Bank’s $10M MusclePharm loan: Read

• Tradecycle Capital’s $7M ABL loan: Read

• SG Credit Partners’s $6M loan: Read

Insight Summary
Last week we saw a mix of activity in the asset-based lending and growth capital markets. The top deals included a $500 million revolving credit facility for Genco Shipping & Trading Limited in New York, a $325 million senior secured credit facility for Durango Permian LLC in Texas, and a $300 million increase to HarbourView Equity Partners' senior secured credit facility in an undisclosed location.

Genco Shipping's deal underscores a strong market for logistics amid high energy costs, with Durango Permian's credit backing natural gas projects, while HarbourView gears up for music royalty deals with new funds. Meanwhile, there's a surge in energy-related capital investments and a notable rise in entertainment finance, with alternative lenders fueling growth in production and music assets.

▲ Winners:
◦ Amid streaming's boom, alternative lenders like HarbourView Equity are aggressively valuing music catalogs, offering liquidity to rights holders from legacy artists to hitmakers, who stand to profit while maintaining future revenue potential.
◦ Mezzanine lenders, like Trinity Capital, excel in the current M&A and startup surge, offering growth capital that outmaneuvers dilutive VCs and sluggish banks, positioning specialty finance, family offices, and BDCs to support ventures from post-seed to pre-IPO stages.

▼ Losers:
◦ Brick-and-mortar retailers seeking capital must pivot to highlight their e-commerce and omni-channel strategies to attract investment, as alternative lenders chase digital entertainment and media.
◦ Amidst a strong midstream/downstream focus and upstream volatility, oil & gas lenders are advised to target lower-cost, eco-friendly shale operations, capitalizing on the evolving energy landscape.

International

• Adani’s Green Energy secures $1.36B for construction: Read

• Blackstone heads $1B GGW buyout private loan: Read

• Cadeler bags $600M green loan for wind vessel expansion: Read

• Singtel acquires S$535M green loan for data centers: Read

• Enel nets $300M IFC loan for Colombia energy distribution: Read

• Enfinity Global finalizes €118M for 101 MW solar plants in Italy: Read

• CA Immo secures €115M green property loan: Read

• Trican Well Service amends, extends $150M credit facility: Read

• Pacific Basin clinches $150M sustainability-linked loan: Read

• Lycos Energy ups credit facility to $50M: Read

  Etc, Etc.

• Eclipse Business Capital offers $40M ABL to Canadian media firm: Read

Insight Summary
The previous week witnessed a flurry of global financing activity, surpassing $3.5 billion, with major deals like Adani Green Energy's $1.36 billion in India, Blackstone's €950 million for Permira's acquisition of Gossler, and Cadeler's €550 million sustainability-linked loan.

Lenders are focusing on large renewable projects by experienced developers like Adani Green Energy in supportive regions like India, shipping firms with solid ESG and decarbonization efforts, cash-flow positive real estate in prime markets like Germany with green certifications, and established 5G corporations driving tech and telecom growth, all prioritizing contracted revenue streams.

▲ Winners:
◦ Renewable developers like Adani and Enfinity's mega deals signify a strong global demand for renewable projects and a shift towards joint ventures for low-cost capital in a high-rate climate.
◦ Nordic banks like Nordea, DNB, and SEB's roles in shipping and offshore wind finance highlight their sustainable lending prowess, backed by sector expertise and export credit skills.

▼ Losers:
◦ Caribbean power sector's limited deals, aside from Barbados' wind farm, underscore the need for enhanced local bank connections and key international partnerships for funding.
◦ Japanese banks' scant shipping involvement points to the need for more overseas deals, using ECA support in emerging markets against yen's decline and slim margins.

New Lenders & Mergers

• EIB commits €20M for Rwanda's climate initiatives: Read.

• CDB Aviation's first sustainability-linked loan totals $625M: Read.

• Merchant Growth secures $300M refi loan from Fortress: Read

• Liberis gains $112M in loan for North American, European expansion: Read

• U Gro Capital and Laghu Udyog Bharati partner to bolster India's MSMEs: Read

Insight Summary
Last week, we saw cross-border collaboration spanning the globe - from Africa to Asia and beyond! In Rwanda, the European Investment Bank and Development Bank of Rwanda signed a $20 million credit line to fund sustainable projects through the Ireme Invest climate vehicle. Meanwhile, in India, fintech U GRO Capital partnered with small business advocate Laghu Udyog Bharati on an outreach campaign to expand access to credit and guidance. And China's CDB Aviation scored big, too, locking down a meaty $625 million sustainability-linked loan facility.

▲ Winners:
◦ U GRO Capital and Laghu Udyog Bharati's collaboration empowers Indian micro-enterprises with tailored financial solutions, enhancing job growth and GDP.
◦ EIB and Rwanda's Development Bank's $20 million partnership via the Ireme Invest fund accelerates Rwanda's sustainable development and cements its climate finance leadership.

▼ Losers:
◦ Airlines and aircraft leasing companies behind in ESG standards could face constrained future funding as sustainability-linked financing gains traction.

Market Analysis Summary
In the previous week, the commercial real estate, asset-based lending, and growth capital markets were primarily driven by activity in New York, Florida, and California. This was underscored by the commencement of the Class-A industrial campus at Cape Canaveral in Florida. Noteworthy property transactions included Pellas's acquisition of the Lawson industrial building in Miami, with significant CRE activity concentrated in Miami, New York City, and suburban outskirts of Chicago.

Key Insights

⮞ Mitsubishi HC Capital America anticipates a 2024 economic reset, followed by growth, increased floorplan financing, and as-a-service models, with stable-to-lower interest rates if a soft landing occurs.
⮞ Companies are embracing as-a-service and asset sharing for flexible access over ownership, allowing for off-book asset reduction and enabling financiers to offer usage-based credit, broadening the market scope beyond just assets.
⮞ The office sector's high refinancing risk in the next two years, amid diverging property performances, poses a notable threat to CMBS delinquency rates.

😲 Didn’t see that one coming

• Troika Media Group announces strategic Chapter 11 filing: Read

• Capstone Green Energy completes restructuring, exits Chapter 11: Read

• Receiver appointed for 54 entities in $26M real estate scam case: Read

• Yellow's trucking terminals fetch $1.9B at bankruptcy auction: Read

• SoCal office campus faces foreclosure auction: Read

• Luxury NYC hotel in default, Reuben Brothers poised to take over: Read

• Unfinished Brooklyn development risks foreclosure: Read

   

Key Insights

Last week's defaults in commercial real estate included Pasadena's $271M Pasarroyo complex facing foreclosure, NYC's luxury Chatwal Hotel auctioned due to debt default with the Reuben brothers poised for ownership, and a Brooklyn development's foreclosure filing over nonpayment allegations. Capstone Green Energy's emergence from Chapter 11 with reduced debt and raised capital boosts energy project finance, while Yellow Corp's ongoing Chapter 11 liquidations, netting $1.9B bids for 130 terminals, present chances for growing transport firms and their financiers.

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