JLL's $3.3B Powerplay Loan & MPOWER's $300M Education Credit Facility

Good Morning TIM Enthusiasts

In a week marked by strategic maneuvers across CRE, ABL, and Growth Capital, the financial sector showcased its agility and foresight. Washington Prime Group's $1 billion refinancing signaled a rejuvenation in retail, matched by Aypa Power's $550 million push into sustainable energy, and a substantial $215 million hospitality sector deal in Philadelphia. Notably, JLL and MPOWER steered major ABL and Growth Capital transactions. However, the sector faced headwinds with the auto lending slowdown, senior housing's supply-demand gap, and IronNet's Chapter 11, highlighting the need for shrewd planning. This fast-paced week in finance reflects a dynamic and complex landscape, demanding quick adaptation and strategic vision. Dive in for a snapshot of who's making waves, adjusting strategies, and navigating this intricate financial dance...PLUS an equipment lender...all within a swift 4-minute overview!

Let’s get into it.

Top Weekly CRE Deals

• Washington Prime on a $1 billion refinancing comeback, post-bankruptcy Read

• Aypa Power secures a $550M for Borden County Battery Storage projects Read

• Barclays, Wells Fargo, Chase team up for a $215M Philly Hotel refi Read

• MF1 Capital steps up with $101M refinancing for a Nashville multifamily Read

• Rockefeller Group secures a $87M loan for a SoCal distribution center Read

• Argentic, Hillcrest provide a $78M boost to Boston's industrial portfolio Read

• BridgeCity Capital commits $60M for East Williamsburg Apt. construction Read

• Horizon Group lands $48M for a mixed-use development in North Miami Read

• Bloomfield Capital offers a $26M bridge loan for a California project Read

• Newmark recharges Arizona apartments with a $19M refi loan Read
  
  Extra, Extra

• Briar Capital finalizes a $13.8M real estate acquisition loan in Texas Read

• Red Oak Capital $4.2M Chicago industrial bridge loan Read

• Bayview PACE $2M Grand Rapids office C-PACE loan Read

Summary
Last week, we saw a resurgence in large refinancing deals, indicating lenders are still willing to provide capital for quality assets. Despite recent bankruptcy, Washington Prime, a retail REIT, secured a $1 billion refinancing, showing retail is rebounding. Blackstone's renewable energy arm closed $550M in project financing, underscoring the growth in green energy deals. In Philadelphia, sponsors refinanced a 1,408-key hotel for $215M from a bank consortium as the hospitality sector continues its pandemic recovery. In Nashville, a multifamily high-rise garnered $101M in refi debt from MF1 as lenders remain bullish on Sunbelt apartment properties. Last week's CRE deals show a polarization towards larger and smaller transactions, sidelining the mid-market. Tighter bank underwriting has fueled a surge in refinancing and opened doors for alternative lenders. Yet, there's still abundant capital for premium sponsors and sectors like industrial, multifamily, renewables, and elite hotels. This market split favors those strategically positioned and opportunistic.

▲ Winners:
◦ Washington Prime's refinancing showcases a recovery model for retail REITs, highlighting portfolio-level recapitalization as a key strategy for post-pandemic capital access.
◦ First Citizens and similar regional banks are emerging as pivotal figures in niche finance areas like renewables, capitalizing on their regional knowledge and industry insight.

▼ Losers:
◦ Owners of less prominent malls face refinancing hurdles, unlike Washington Prime's triumph, possibly needing equity partners and redevelopment plans to secure funds.
◦ Rate volatility is pushing insurance companies away from refinancing and into construction lending as they struggle to match fixed-rate bank loan offerings.

Top Weekly ABL and Growth Capital Deals

• BMO and BofA orchestrate a $3.3 billion credit facility renewal for JLL Read

• MPOWER receives $300M from Goldman Sachs & Värde Partners Read

• Strata Clean Energy secures $300M from Nomura & ING Capital Read 

• Ares Capital furnishes Paragon 28 with a new $150M credit facility Read

• Eclipse BC extends a $100M ABL facility to a chemical manufacturer Read

• Angelo Gordon JV secures a $75 million credit facility Read

• MidCap Financial closes a $23M revolving credit facility for Wine.com Read

• Click Therapeutics locks in $20 Million debt financing from HSBC Read

• Clarus Capital offers $10M lease financing for a public network operator Read

• SG Credit commits $10 Million in DIP financing to Water Gremlin Read

  
  Notables

• Utica Equipment fulfills a $3.5MM capital lease for a trucking firm Read

Insight Summary
The past week marked over $650 million in new U.S. commercial financing, highlighted by three prominent transactions: JLL's $3.3 billion credit facility for growth and sustainability, MPOWER Financing's $300M+ for student loans expansion, and Strata Clean Energy's $300M for renewable projects. Focused primarily in New York, California, and Texas, sectors like healthcare, sustainability, and education saw significant financing activity. Rising rates tighten margins despite high liquidity, yet alternative lenders and non-banks filled gaps with nimble, strategic financing solutions. This activity signals continued lender openness across various sectors, emphasizing careful selection and pricing strategies. Last week was outshined with mega-deals and diverse industry activity, highlighting a solid market with robust lender appetite and flexible financing options. Despite the previous week's refinancing benefits, last week's dynamic landscape and disciplined pricing mark it as the healthier financing environment.

▲ Winners:
◦ Renewable Energy companies’ success in securing financing showcases growing lender support for ESG-linked loans, fueling the momentum of renewable energy projects to meet climate goals.
◦ MPOWER Financing's niche expertise in international education allows for bespoke student loan solutions, demonstrating the value of sector-specific finance firms.

▼ Losers:
◦ Limited funding avenues challenge small businesses, but exploring community programs and SBA loans can offer vital capital solutions.
◦ Online lenders' lack of personal touch and local expertise may hinder borrower loyalty; enhancing consultative services could bridge this gap.

Domestic Lenders

• Deutsche Bank orchestrates $100M debt financing for Aquila Air Capital Read

• Altriarch Specialty Finance disburses $43.5M to factoring companies Read

• Kennedy Wilson broadens debt platform with PacWest loan acquisition Read

• Fintech Juni expands with inventory financing for Euro E-Com businesses Read

International

• Selfridges negotiates extension for its £1.8B property debt Read

• SAS reaches agreement, supplanting existing $500M DIP financing Read

• Hudson Pacific concludes $455M refinancing of Bentall Centre loan Read

• U.S. loan of $125M set to rejuvenate Greece’s Elefsina shipyard Read

• Pacific Green lands £124M loan for a 249MW UK battery storage project Read

• Brent Cross Town acquires €111.7M green loan from LaSalle Read

• Macquarie procures €75M loan from Pbb for Warsaw office building Read

• German Wefox secures $55M loan from Deutsche Bank & UniCredit (Read)

• Dutch company acquires €40M loan to end male chick culling (Read)

• Sallyport provides $1M in financing for Canadian food manufacturer (Read)

• Mufin Green & Perpetuity Capital join to boost India’s EV financing Read

Insight Summary
Last week, we saw vigorous activity in commercial real estate lending and specialty finance markets nationwide. In particular, there was robust CRE lending in Los Angeles, New York, Charleston, the Southeast, and the West Coast. Altriarch provided $43.5M to specialty lenders, Kennedy Wilson acquired a $2.6B construction loan portfolio from PacWest, and Deutsche Bank financed $100M for Aquila Air Capital. Internationally, prominent international finance transactions were led by a $454.8 million refinancing of a Vancouver office tower in Canada, followed by $119 million in funding for build-to-rent flats in London, UK, and a €75 million office refinancing in Warsaw, Poland.

▲ Winners:
◦ Airlines can generate liquidity from excess aircraft by employing asset-backed leasing for grounded fleets, turning idle assets into cash flow.
◦ ESG startups and impact investors targeting renewables and carbon reduction find an expanding deal landscape as ESG priorities gain prominence.

▼ Losers:
◦ Rising interest rates pose a deposit flight risk for community banks, threatening their liquidity and lending capabilities.
◦ Lenders lacking ESG policies risk missing out on crucial deal flow and borrower relationships centered on sustainability.

Market Summary
Last week saw Illinois, California, and Texas at the forefront of CRE, ABL, and Growth Capital deals. Massachusetts stood out with major construction projects, notably the Enterprise Research Campus's sprawling 900,000-square-foot facility in Boston. Significant property transactions flourished in Illinois, California, and Texas, highlighted by The Napleton Family’s $60M purchase of the 31-story Oakbrook Terrace Tower. Chicago and LA County in California emerged as the top two metropolitan hotspots for CRE activity.

Key Insights

⮞ Retail market dynamics, driven by supply constraints and demographic shifts, are elevating rents and favoring landlords, with urban and suburban retail thriving, enhancing its appeal in REIT M&A and CMBS deals.
⮞ Senior housing sees record high occupancy and rents amidst a supply crunch, with $18B in maturing loans and insufficient affordable construction for an aging population.
⮞ Auto lending is softening, evidenced by falling loan volumes and a shrinking subprime segment, necessitating lenders to adjust their risk appetite for an anticipated further slowdown.

😲 Didn’t see that one coming

• Freddie Mac investigates Meridian Capital over undisclosed dealings Read

• IronNet Inc. initiates voluntary Chapter 11 bankruptcy proceedings Read

• Opus Place site taken over by lender, while foreclosure is postponed Read

• Consortium victorious in Celsius bankruptcy bid, shares post-Ch. 11 plan Read

• Byju’s lenders gain the upper hand in loan default dispute Read

Key Insights

Last week's lending environment was challenging, with IronNet's Chapter 11 bankruptcy highlighting difficulties in tech financing and emphasizing cautious underwriting for specialty lenders. Benmark Capital's foreclosure in Atlanta pointed to the perils in luxury condo projects, shifting focus to affordable housing and caution for speculative ventures. The Freddie Mac investigation into Meridian Capital underscored the need for stringent compliance and oversight in agency loans for CRE brokers and mortgage lenders. In a positive turn, lenders gained an upper hand as a Delaware court ruled Byju in default of its $1.2B loan, allowing creditors to claim the pledged Ed-tech unit.

🤵 LENDER LOUNGE

Looking to close your Equipment deal? This week’s Illinois lender could help:

Time to Close: 4 weeks on average
Paperwork Required for LOI: Detailed equipment list, current and prior years financials, locations of the M&E, Appraisals in lieu of if available, debt schedule if M&E is encumbered
Type of Equipment Financed: We don’t work in Aviation, Marine, Rail, Cannabis, Farming, or IT. The majority of our customers are in manufacturing, packaging, and transportation industries
New vs. Used Equipment: We offer Asset-Based loans against existing machinery and equipment and look at the liquidation value
Min to Max Loan: $1M to $20M
Sweet Spot: $1M – $20M
Min FICO Score: N/A, we will never decline anyone for financials or years in business.
Interest Range: Prime + 5 to 10
Loan-To-Value: 60% to 90% depending on industry
Origination Fee: 4%, ½ of which is paid to the broker of record
Due-Diligence Fee: Application is free. We collect a due diligence fee to start underwriting and send a team of appraisers to the location to appraise the M&E once a term sheet is signed. This fee starts at $10K and increases depending on the complexity of the legal documents required (i.e. for a merger and acquisition) or if they have collateral at multiple locations in North America
Collateral Requirements: We need a 1st on the M&E, and we file a blanket on other assets. We work with AR, ABL, CRE, and Inventory lenders where each of us will subordinate on the other collateral
Repayment Terms: 2 or 3-year terms amortized over 4 or 5 years
Equipment Inspection: Yes, we need to complete an onsite appraisal
Pre-Payment Penalty: 4% for the 1st year, 3% for the 2nd, and 2% for the final and subsequent years.
Extension of Loan: We can refinance after the 2nd year for a 1% origination fee
Geography: We lend across the USA and Canada (except for Quebec)
Refinance into a longer-term loan: We can refinance after the 2nd year for a 1% origination fee
Insurance Requirements: Yes, we require liability and property coverage 
Vendor Restrictions: No
Lease vs. Loan Options: We offer lines of credit, sale-leasebacks, and loans. Rates are the same for all three products


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