☀️🏭💰 Last Week’s Jaw-Dropping $7.1B Deals You Should Know: Invenergy, Matador Resources, HFD

[5 Minutes Read] Plus DOE $1.5 Billion Nuclear Loan

Author

Bridge Loan Guy
April 01, 2024

Good Morning TIM Enthusiasts

The commercial lending landscape witnessed significant deals across various sectors in a week marked by triumphs and challenges. Natixis Bank closed a series of financings totaling $1.27 billion for Invenergy's renewable power projects, while Related Group and GTIS Partners secured a $328 million construction loan from Bank OZK for the luxury Baccarat Residences in Miami. In the ABL arena, Bastion Management provided a $60 million senior debt investment to Healthcare Finance Direct, and Eclipse Business Capital closed a $15 million senior secured credit facility for a connector and cable manufacturer. Growth capital deals saw Matador Resources Company amend its credit agreement to increase commitments to $1.5 billion, and Installed Building Products successfully refinanced with a new $500 million term loan. However, the week also saw its share of defaults and legal disputes, with the FTC settling charges with fintech Biz2Credit and Womply for a total of $59 million related to PPP loan applications and Fortress Investment Group alleging a payment default on a $533.6 million loan to billionaire Charles S. Cohen. As we look closer at the intricate financial ballet of thriving, surviving, and adapting strategies, let's examine the key players and their moves in just five minutes!....all in a mere 5-minute act!

Let’s get into it.

Watch our break down on the top 10 finance deals on Youtube: https://youtu.be/nJbCM-9a9qU

Top Weekly CRE Deals

  • Natixis spearheads a $1.27B construction loan for Invenergy's projects Read
    Lender: Natixis, Construction Loan

  • Related Group secures $328M from Bank OZK for Brickell development Read
    Lender: Bank OZK, Refi Loan

  • Morgan Stanley refreshes Washington Hilton with a $229M CMBS refi Read
    Lender: Morgan Stanley, Refi Loan

  • Turnberry clinches $172M for a North Miami condo tower project. Read
    Lender: Bank OZK, Construction Loan

  • RV Mgmt’s Long Beach Apartment receives a $166M construction loan Read
    Lender: Kennedy Wilson, Construction Loan

  • Santander and Related finance $135M for Crown Heights multifamily Read
    Lender: Santander & Related Fund Management, Refi & Partner-Buy Out

  • Benefit Street Partners wraps up a $120M loan for a Texas office portfolio Read
    Lender: Franklin BSP Realty Trust, DIP & Inventory Loan

  • Greystar secures a $95M construction loan for a LA multifamily project Read
    Lender: Kennedy Wilson, Construction Loan

  • CREI gathers $67M for affordable Miami senior housing development Read
    Lender: Centennial Bank, Construction Loan

  • Vision Properties acquires a $65M refinance for an Atlanta office building Read
    Lender: Franklin BSP Realty Trust, Refi Loan

Summary
Last week, we saw robust financing activity in the commercial real estate market, with several high-profile deals closing across various property types and geographies. Natixis Corporate and Investment Banking closed a series of financings totaling $1.27 billion to support Invenergy's renewable power projects in Kansas and Texas, demonstrating the continued appetite for financing clean energy infrastructure. In Miami, Related Group and GTIS Partners secured $328 million from Bank OZK for the uber-luxury Baccarat Residences in the Brickell district, one of the largest construction loans in South Florida this year. The project's strong pre-sales, valuing the total sellout at over $1 billion, underscore the resilience of Miami's luxury condo market. Other notable transactions included Oaktree Capital Management and Clearview Hotel Capital's $229 million CMBS refinancing of the Washington Hilton property.

Bank OZK and Kennedy Wilson emerge as the top lenders, having originated over $500 million and $261 million in construction loans for high-profile projects in South Florida and Southern California. The average loan size across the deals mentioned was approximately $235 million. The most prominent activity was construction financing, with notable loans including $328 million for Related Group and GTIS Partners' Baccarat Residences in Miami and $166 million for R&V Management and Trammell Crow Residential's Alexan West End development in Long Beach. This suggests a focus on large-scale, high-value projects.

Key Insights

  • Pre-sales and strong demand for luxury condo products in South Florida are driving significant construction financing deals

  • ESG and renewable energy projects are attracting significant financing from major lenders

  • Multifamily developments in high-demand markets continue to secure construction loans

  • Well-located, recently renovated office properties can still obtain refinancing despite market challenges

 Top Opportunities/Markets:

CRE Lenders:
1) Renewable energy projects are attracting significant financing
2) Luxury condo developments in South Florida and multifamily developments in growing markets are securing substantial construction loans
3) Hospitality assets are refinancing through CMBS loans
4) Affordable housing projects for seniors are securing financing
5) Office properties undergoing renovations and strong leasing efforts are obtaining refinancing.

CRE Developers:
1) Strong demand for luxury condo developments in South Florida presents opportunities for developers to partner with high-end hotel brands to create unique and sought-after living experiences
2) Growing interest in build-to-rent townhome communities suggests the potential for developers to collaborate with property management firms specializing in single-family rentals
3) The ongoing need for affordable housing, particularly for seniors, offers opportunities for developers to work with local governments, non-profit organizations, and service providers

CRE Investors:
1) The increasing allocation of capital towards renewable energy projects suggests the potential for investors to explore opportunities in the clean energy sector
2) The resilience of the luxury condo market in South Florida presents opportunities for investors to acquire well-located, high-end residential properties or partner with experienced developers in this market segment
3) The continued demand for multifamily housing in growing markets offers investors the potential to target value-add apartment acquisitions, participate in multifamily development joint ventures, or invest in real estate funds focused on this asset class.

CRE Brokers:
1) The significant construction financing activity in the luxury condo market presents opportunities for mortgage brokers to cultivate relationships with HNW individuals and family offices interested in acquiring these premium residential properties.
2)   The financing of mixed-use developments offers potential for mortgage brokers to connect with retail tenants, community facility operators, and residential buyers or renters interested in these multi-faceted properties
3) The appetite for financing affordable housing projects suggests opportunities for mortgage brokers to work with local housing authorities, non-profit organizations, and specialized affordable housing investors

Top Weekly Growth Capital Deals

Top Weekly ABL Deals


Insight Summary

Last week we saw a flurry of activity in the asset-based lending and credit markets, with several notable transactions taking place across various industries. Matador Resources Company successfully amended its credit agreement, increasing its elected commitment to $1.5 billion and extending the maturity date to 2029 while welcoming five new banks to its lending group. The company also completed natural gas pipeline connections to enhance its midstream infrastructure and support growth objectives. In the energy sector, the Department of Energy provided a $1.5 billion loan to restart the Palisades nuclear power plant in southwestern Michigan, highlighting the renewed focus on carbon-free electricity generation. Installed Building Products, a leading insulation and complementary building product installer, successfully closed a $500 million term loan to refinance its existing debt and pay fees.

The top lenders appear to be banks again, with several large transactions involving bank-led lending groups, such as PNC Bank, Goldman Sachs, Bank of America, Capital One, and RBC. The most prominent activity appears to be refinancing existing debt and securing additional liquidity to support growth initiatives and maintain financial flexibility.

Key Insights

  • Lenders are focusing on companies with strong operating and financial performance, conservative capital structures, and growth potential.

  • The energy sector is seeing renewed interest, with over a billion dollars in loans for a nuclear power plant in Michigan and Matador Resources Company.

  • Refinancings and maturity extensions are common themes, with many companies taking advantage of favorable credit markets to optimize their capital structures and reduce borrowing costs.


💡 Top Markets/Opportunities:
Asset-Based/Growth Cap Lenders: 
1) Energy companies show promise for lenders seeking to finance projects with strong government support and a focus on sustainability
2) Construction and building materials companies with strong fundamentals and growth potential
3) Technology and e-commerce companies with solid market positions and growth trajectories.
4) Midstream energy infrastructure projects
5) Healthcare companies providing specialized services


Family Offices
1) Innovative fintech companies have the potential to disrupt traditional financial services and create value across various sectors by improving access to capital and streamlining financial transactions.
2) Specialty retailers with strong brand recognition and customer loyalty could be attractive targets for acquisition or investment
3) Companies providing critical services to the cannabis industry could be interesting investment opportunities


Private Equity Firms
1) As businesses increasingly shift their marketing budgets to digital channels, digital marketing companies with expertise in this area may be attractive acquisition targets.
2) With an aging population and the ongoing need for specialized care, the skilled nursing and post-acute care sector may offer stable, long-term growth prospects
3) As the demand for reliable and efficient telecommunications infrastructure grows, Companies that provide critical infrastructure and support services to the telecom industry may benefit from increased investment and consolidation.


Brokers
1) Focus on connecting businesses in the renewable energy sector, such as solar panel manufacturers or wind turbine component suppliers, with appropriate financing solutions
2) With the accelerated adoption of remote learning due to the pandemic and the growing demand for flexible, accessible education options, companies that provide e-learning platforms, content, or support services may need financing to expand their offerings and reach new markets
3) Businesses that offer innovative solutions for supply chain management and logistics, such as AI-powered inventory optimization or blockchain-based tracking systems, could be attractive targets for commercial finance brokers

 New Lender Programs


😲 Didn’t see that one coming

  • Two US fintechs agree to a $59M settlement with the FTC over PPP-related charges Read

  • Fortress demands payment after a $533M loan default by an investment group Read

  • A major loss marks the sale of a defaulted downtown L.A. office property Read

  • Quality Equipment Finance temporarily halts internal funding operations Read

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