Last Week's Incredible Loans: Witkoff $1.2 Billion, Brightspeed $3.7 Billion, eCapital $15 Million

Good Morning Everyone

This week in Deals:

$2.08 billion in top 10 CRE deals
$6.74 billion in top 9 Growth Cap deals
$29.9 million in top 5 ABL deals
$1.41 billion in top 10 International deals

Top CRE Lenders
JP Morgan, TYKO Capital, Wells Fargo, Madison Realty Capital, Taconic Capital Advisors, KeyBank, Webster Bank Healthcare, CIBC Bank, Deutsche Bank, SCALE Lending, Naftali Credit Partners, Axos Bank, and Timbercreek Capital.

Top Growth Cap Lenders
Apollo Global Management, Silver Point Finance, Fortress Credit, Cerberus Capital Management, Monarch Alternative Capital, Citi, New Enterprise Associates, 7wireVentures, SignalFire, Viola Group, Viola Credit, a syndicate of insurance companies, JP Morgan, Goldman Sachs, Oxford Finance, TAB Bank, and Ares Management.

Top ABL Lenders
eCapital, MidCap Business Credit, SLR Healthcare, Flatbay Capital, and Prestige Capital

Top International Lenders
Abu Dhabi Commercial Bank, Emirates Islamic Bank, Commercial Bank of Dubai, Gulf International Bank, Rothesay, BNP Paribas, Deka, Westpac New Zealand, Mizuho, China Construction Bank, Intesa Sanpaolo, ING, Investec, UniCredit Bank, European Bank for Reconstruction and Development, European Investment Fund, ESR Europe, and Nebari Natural Resources Credit Fund

🌆Top Weekly CRE Deals

• J.P. Morgan, Tyko Capital provide nearly $1.2B in financing for Chelsea luxury towers Read

• Loews Miami Beach Hotel nears $305M refi Read

• KeyBank provides $94M refi for 390-unit apartment community in Tysons Corner Read

• Madison Realty Capital, Taconic Capital lend $94M to complete South Florida apartments Read

• 13th Floor lands $83M to build apartments next door to Big Easy Casino Read

• Scale Lending provides $75M bridge loan for New Jersey multifamily Read

• Hackman Capital Partners, Affinius Capital land $75M refi for L.A. mixed-use property Read

• Naftali Credit Partners provides $72M construction loan for Queens luxury condo Read

• Timbercreek Capital provides $69M bridge loan to refi Orlando apartment complex Read

• Maxim Capital Group lends $54M on Bay Harbor Islands apartments Read

• Webster Bank Healthcare underwrites $30.6M; arranges and underwrites $58.4M in development capital for Anchor Health Properties Read

Summary

Here’s what we are seeing in the latest loans:

• Wells Fargo and J.P. Morgan Chase co-originated a $305 million 10-year, fixed-rate, interest-only loan for Loews Corporation's Miami Beach hotel

• SCALE Lending supplied a $75 million bridge loan with an 18-month term and two six-month extension options for a mixed-use development in New Jersey

• KeyBank Real Estate Capital arranged a $94.3 million non-recourse, fixed-rate loan with a five-year term and interest-only option after three years for an apartment complex in Tysons Corner, Virginia, to be securitized through Freddie Mac

• Deutsche Bank and Wells Fargo provided a $75 million five-year, fixed-rate loan for the Culver Steps mixed-use property in California, with 45% of the loan packaged into a commercial mortgage-backed securities (CMBS) deal

Winners

• Developers with mixed-use projects in prime urban locations

• REITs and family office professionals investing in real estate

• Traditional banks like J.P. Morgan Chase and Wells Fargo

• Specialized lenders like SCALE Lending and Maxim Capital Group

Losers

• Small to mid-sized business owners looking to acquire or refinance commercial properties

• CRE brokers dealing with lower-tier properties or properties in secondary markets

• Smaller community banks and credit unions

• CMBS lenders might also face challenges, as the market seems to be favoring balance sheet loans from banks and life insurance companies

Tips For Borrowers

1. Consider bridge loans for transitional assets or lease-up periods, as demonstrated by the SCALE Lending deal.

2. Explore fixed-rate options for stabilized properties to lock in favorable terms, as seen in the Loews Corporation refinancing.

3. Leverage strong sponsorship and prime locations to secure larger loan amounts, exemplified by the Chelsea towers refinancing.

4. Seek out lender partnerships that offer flexibility in loan structures, such as interest-only periods or extension options.

💡Top Opportunities:
luxury mixed-use developments in prime urban locations, hospitality assets in top tourist destinations, apartment complexes in growing suburban areas near major cities, senior living facilities in affluent areas, affordable housing projects in areas with strong government support, mixed-use developments in up-and-coming areas

💸Top Weekly Growth Capital Deals

• Brightspeed secures a massive $3.7B in financing to build fiber networks Read

• Agree Realty Corporation enters into a $1.25B revolving credit agreement Read

• Silver Point Finance leads $862M financing for Sweet Oak’s acquisition of Whole Earth Brands Read

• AKTG secures $500M of financing from Citi to fund its continued expansion Read

• PayZen lands $32M equity investment and $200M credit warehouse in Series B round Read

• JPMorgan Chase Bank, Goldman Sachs Bank provide $100M commitments to CEC Entertainment Read

• Oxford Finance provides $47M credit facility to Creative Solutions in Healthcare Read

• TAB Bank provides $27.8M funding to support the growth of a leading aluminum manufacturer Read

• SSG places $25M debt financing for Pegasus Home Fashions Read

Top Weekly ABL Deals

• eCapital provides a $15M facility to support water brand’s growth through accounts receivable and inventory financing Read

• MidCap Business Credit closes $5M asset-based credit facility for Premier Engineered Products Read

• SLR Healthcare ABL provides a $5M asset-based revolving credit facility to large regional home care agency Read

• Flatbay Capital closes a $3.9M loan for alloy manufacturer Read

• Prestige Capital extends a $1M facility to a Southeastern-based technology company Read

Summary
Here’s what we are seeing in the latest loans:

• Agree Realty Corporation secured a $1.25 billion senior unsecured revolving credit facility, maturing in August 2028 with options to extend to August 2029. The facility's interest rate is tied to SOFR plus 82.5 basis points

• CEC Entertainment amended its revolving credit agreement, extending the maturity date to August 9, 2029. The facility includes a Term SOFR rate plus a 4.00% margin.

Winners

• Telecommunications infrastructure companies

• Travel and hospitality businesses

• Alternative lenders and private equity firms

• Specialty lenders focusing on healthcare and technology

Losers

• Traditional brick-and-mortar retailers

• Small to medium-sized manufacturers, particularly those without a strong technology component

• Traditional asset-based lenders focusing solely on inventory and accounts receivable

• Small community banks without significant sector expertise or the capacity for large deals
  

Tips For Borrowers

1. Leverage strong credit profiles to negotiate more favorable terms, as seen in Agree Realty's case

2. Be prepared for tighter covenants and higher margins in sectors perceived as riskier, exemplified by CEC Entertainment's facility

3. Explore opportunities to consolidate and restructure existing debt to improve overall terms, as demonstrated by Abercrombie & Kent

4. Consider the benefits of longer-term facilities with extension options, like Brightspeed's $3.7 billion financing, which provides stability for large-scale projects

💡Top Opportunities:
Telecommunications infrastructure companies, travel and tourism businesses rebounding from the pandemic, healthcare technology companies focused on patient financial solutions, companies in the food manufacturing sector with a health-conscious focus, family entertainment businesses, companies that provide specialized manufacturing services for defense and commercial sectors, and home goods manufacturers

Top International Deals

• Waha Capital secures new $400M revolving credit facility Read

• Hammerson and PIMCO secure €350M loan for Dundrum Town Centre Read

• Lightsource bp secures NZ$267M financing package for Kowhai Park solar farm Read

• Voltera secures $100M debt facility from ING and Investec Read

• CA Immo and UniCredit Bank agree €90M financing for Berlin offices Read

• Nova Post funds long-term growth plans with €70M loan Read

• Infinity Recycling secures €50M financing to boost plastic reduction and recycling efforts Read

• EBRD arranges €40.1M in financing for solar plants in Bosnia Read

• ESR Europe closes €18M loan to finance acquisition of Lisbon property Read

• Emerita Resources secures $15M credit facility to advance IBW project Read

• CIBC Innovation Banking provides $10M growth capital to Boosted.ai Read
  

Summary
Here’s what we are seeing in the latest loans:

• Waha Capital's $400 million revolving credit facility with a 3-year term, extendable by up to two years.

• CA Immo and UniCredit Bank GmbH's €90 million financing for two Berlin office buildings, with 5-year and 2-year terms. The longer-term tranche was structured as a 'green loan'

• Hammerson plc and PIMCO Prime Real Estate's €350 million non-recourse term loan of up to seven years for Ireland's Dundrum Town Centre. This refinancing deal, with an expected all-in interest cost of 5.5%, extends Hammerson's average debt maturity from 2.2 to 2.9 years

• Emerita Resources' credit agreement with Nebari, providing up to US$15 million over three tranches with a 48-month maturity. This deal offers Emerita non-dilutive capital in a challenging equity environment
  

Tips For Borrowers

1. Consider flexible terms: As seen in Waha Capital's deal, negotiating extension options can provide valuable flexibility in uncertain economic environments.

2. Leverage green credentials: CA Immo's success in securing a 'green loan' demonstrates the potential benefits of highlighting sustainable aspects of your projects or operations.

3. Explore non-dilutive options: Emerita Resources' credit facility shows how debt financing can be an attractive alternative to equity in challenging markets for resource companies.

4. Consider asset-based structures: Lightsource bp's project financing for its solar farm illustrates how companies can leverage specific assets to secure favorable terms.

😲Didn’t see that one coming

• Equinox-owned Blink Fitness files for Chapter 11 bankruptcy Read

• Massive banks are now accused of cheating customers out of billions Read

• SEC charges Russell Todd Burkhalter and his Atlanta-based firm with a $300M Ponzi scheme and obtains emergency relief Read

• Multifamily loan fraud scheme costs JLL $18M Read

• Avon owner files for bankruptcy after wave of talc cancer claims Read

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