This Week's Unbelievable Loans: Entek $1.2 Billion, CyrusOne $7.9 Billion, Aequum $6.25 Million

Good Morning Everyone

This week in Deals:

$3.85 billion in top 10 CRE deals
$9.78 billion in top 10 Growth Cap deals
$15.75 million in top 3 ABL deals
$8.88 billion in top 10 International deals

Top CRE Lenders
US Department of Energy, Gaming and Leisure Properties, Citigroup, Goldman Sachs, MidFirst Bank, Barings, Benefit Street Partners, Aareal Capital, Valley National Bank, and Affinius Capital.

Top Growth Cap Lenders
Morgan Stanley, TD Securities, KKR Capital Markets, Wells Fargo, KeyBank, PNC Bank, TD Bank, Truist Bank, Goldman Sachs, Associated Bank, TCW Private Credit, Wingspire Capital, Citibank, Madison River Capital, WhiteHorse Capital, Eclipse Business Capital, CIBC, and First National Capital Corporation

Top ABL Lenders
Aequum Capital, Rosenthal and Rosenthal, and Entrepreneur Growth Capital

Top International Lenders
JBIC, BMO, Abu Dhabi Commercial Bank, Crédit Agricole, First Abu Dhabi Bank, ING, Mashreqbank, Natixis, UBS Switzerland AG, European Bank for Reconstruction and Development, Islamic Development Bank, DEG, Proparco, Standard Chartered, KfW-IPEX Bank, BNP Paribas, Societe Generale, The Bank of Nova Scotia, SMBC, Macquarie Group, Coöperatieve Rabobank, HSBC, Commonwealth Bank of Australia, Wells Fargo, CIBC, Brown Brothers Harriman & Co., CTBC, Malayan Banking Berhad, Chang Hwa Commercial Bank, Land Bank of Taiwan, and Mega International Commercial Bank.

Lender of the Week
Wells Fargo-Syndicate member of $7.9B CyrusOne Loan, Syndicate member of $500M Elme Communities Loan, Syndicate member of $300M Auramet Loan

🌆Top Weekly CRE Deals

• The US just financed a $1.2B EV lithium-ion battery separator factory in Indiana Read

• New 34-Story Hotel Tower Unveiled with $950M Loan For Bally’s Permanent Chicago Casino Site Read

• Goldman Sachs Provides $430M CMBS Refi for Fairmont Austin Hotel Read

• Slatkin Brothers Land $400M Refi for SoCal Beachfront Hotels Read

• Benefit Street Partners Lends $210M on New Jersey Condos Project Read

• Barings, Counterpointe SRE Lend $165M on Connecticut Mixed-Use Project Read

• Oklahoma Health Center Lands $167M for Campus Expansion Read

• Affinius Capital Provides $113M Refi for Yonkers Luxury Multifamily Building Read

• Aareal Capital Supplies $148M Refi on Harlem’s Tallest Tower Read

• Valley National Bank Lends $72M on Greenwich Village Condo Tower Project Read

• Historic Hotel Viking, Located in Newport, Rhode Island Receives $72 Million in Financing Read

Summary

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

• The $400 million refinancing for two Santa Monica luxury hotels includes a two-year senior CMBS loan from Citigroup.

• Colliers Mortgage secured a $29.908 million Fannie Mae loan for Highline Apartments in Omaha, featuring a 10-year, full-term interest-only structure

• PACE Loan Group provided a $7.1 million, 20-year fixed-rate C-PACE loan for Vista Prairie at Eagle Pointe in Minnesota

• City National Bank of Florida issued a $69.9 million floating-rate, five-year loan to refinance the 4000 Ponce office building in Coral Gables

• Northbridge Partners obtained a $27.8 million five-year, fixed-rate, non-recourse acquisition loan from Bristol County Savings Bank for an industrial portfolio in the Boston area
  
  

Loan Structures
Shorter-term loans, particularly in the two to five-year range, are common for more significant commercial properties, suggesting caution in long-term commitments. CMBS loans remain popular for substantial hotel refinancing, often structured with interest-only periods. Both floating-rate and fixed-rate options indicate varied strategies for interest rate risk management. Longer-term, full-term, interest-only loans appear more readily available for multifamily properties, primarily through government-sponsored enterprises like Fannie Mae. Using C-PACE financing for energy-efficient improvements demonstrates the growing importance of sustainability in real estate financing.

Tips For Borrowers

1. Consider CMBS loans for large hotel refinancing, which can offer substantial funding with shorter terms.

2. Explore floating-rate options for office properties, which may provide more flexibility in the current market.

3. Consider green certifications or energy-efficient designs to potentially secure better loan terms, as seen in some Fannie Mae-backed deals.

4. Investigate C-PACE financing for energy-efficient improvements, which can offer long-term, fixed-rate options.

💡Top Markets/Opportunities:

CRE Lenders Focus:
1) Clean energy infrastructure projects
2) Gaming and hospitality sector
3) Luxury hotel market
4) Senior living sector

CRE Developers Focus:
1) Building specialized storage or distribution centers
2) Develop complementary properties like boutique hotels or themed restaurants
3) Develop smart, energy-efficient multifamily properties

CRE Investors Focus:
1) Investing in specialized industrial REITs focusing on high-tech manufacturing
2) Investigate green bonds or sustainable real estate funds
3) Explore opportunities in the gaming REIT sector

CRE Brokers Focus:
1) Develop relationships with clean energy financiers
2) Cultivate connections with hospitality specialists
3) energy auditors or sustainability consultants

💸Top Weekly Growth Capital Deals

• KKR-backed CyrusOne secures $7.9B in new debt capital to fund U.S. data center projects Read

• Wells Fargo Agents New $500MM Credit Facility for Elme Communities Read

• Truist Securities Arranges $250MM Revolving Credit Facility for REPAY Read

• Consumer Portfolio Services Renews $200MM Revolving Credit Agreement with Citibank Read

• Carl Marks Securities Advises on $190MM Recapitalization of JDC Power Systems with Madison River Capital Read

• Netevia secures up to $120M in debt financing from WhiteHorse Capital Read

• Eclipse Business Capital Provides $101.2MM Senior Secured Credit Facility To An Automotive Parts Manufacturer Read

• Sound Point Meridian Announces $100 Million “Net Asset Value” Credit Facility Read

• Wingspire Capital Provides $60 Million Senior Secured Revolver to Comtech Telecommunications Corp Read

• First National Capital Provides $65MM CAPEX Facility to National Transportation Company Read

• SLR Credit Solutions Agents $65MM Senior Credit Facility for Quantcast Read

Top Weekly ABL Deals

• Rosenthal Closes Three California-Based Transactions for $7.5M Read

• Aequum Capital Provides $6.25MM in Credit Facilities to Producer of Craft Maple Products Read

• Entrepreneur Growth Capital LLC Provides $2MM Line of Credit to Frozen Seafood Distributor Read

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

• Elme Communities' $500 million credit facility leads the pack with its four-year term, maturing on July 10, 2028, and featuring two 6-month extension options. Its floating interest rate, based on adjusted daily SOFR plus 85 basis points,

• Consumer Portfolio Services, Inc. renewed its two-year $200 million revolving credit agreement with Citibank

• Sound Point Meridian Capital's $100 million "net asset value" revolving credit facility with its maturity set for July 8, 2026, and potential for a 364-day extension. This facility offers a choice between term SOFR plus 3.75% or the alternate base rate plus 2.75%

• First National Capital Corporation's $65 million CAPEX facility for a national transportation company with a five-year term

Loan Structures
In recent transactions, we're seeing a trend towards flexible, borrower-friendly terms in specialty financing. The $500 million credit facility secured by Elme Communities exemplifies this, featuring a four-year term with two 6-month extension options. This structure, combining a medium-term commitment with built-in flexibility, is becoming increasingly common. While specific LTV ratios aren't widely disclosed, the substantial size of facilities like CyrusOne's $7.9 billion warehouse credit suggests lenders' comfort with higher leverage for strong borrowers in favored sectors. Interest rates are predominantly floating, often tied to SOFR, as seen in Elme's facility priced at SOFR plus 85 basis points. Covenant-lite structures are gaining traction, particularly in larger deals, indicating intense competition for high-quality borrowers.

Tips For Borrowers

1. Leverage industry tailwinds: CyrusOne's substantial facility demonstrates how companies in high-growth sectors like data centers can secure large-scale financing by capitalizing on industry trends such as AI adoption.

2. Explore flexible terms: Elme Communities' facility, with its extension options and accordion feature, shows the value of negotiating flexible terms that can adapt to future needs.

3. Evaluate non-traditional lenders: Virpax's financing from an institutional investor highlights the potential for alternative funding sources, especially for smaller or emerging companies.

4. Optimize existing relationships: Consumer Portfolio Services' renewal of its $200 million facility with Citibank underscores the importance of maintaining strong banking relationships for continued access to capital.

💡Top Markets/Opportunities:
Asset-Based/Growth Cap Lenders Focus
1) Data center operators and infrastructure providers
2) Payment processing companies
3) Automotive parts manufacturers
4) Advertising technology companies

Family Offices Focus
1) Investing in companies that supply or service data centers
2) Explore opportunities in AI-driven advertising technology
3) Companies developing sustainable technologies for real estate

Private Equity Firms Focus
1) Roll-up opportunities in fragmented sectors of the automotive parts industry
2) Explore specialized fintech firms focusing on niche payment processing solutions
3) Companies developing next-generation telecom technologies

Brokers Focus
1) Focus on connecting emerging biotech firms with lenders open to governance-linked financing
2) Arrange financing for companies transitioning from venture capital to more traditional financing
3) Explore opportunities to structure sustainability-linked loans for mid-sized companies

Top International Deals

• Abu Dhabi National Oil Company & JBIC sign $3 billion green financing deal Read

• Bank of Montreal leads $2.55 billion loan in Nuvei deal Read

• Alvotech announces closing of $965M private debt financing Read

• Frasers Property secures $670 million sustainability-linked loan Read

• BB Energy Group Holding Ltd. successfully closed its new syndicated 1-year revolving credit facility at $400 million Read

• $386M financing closed for 500MWh Uzbek battery system Read

• Grenergy secures $354M financing for first phases of ‘world’s largest BESS’ in Chile Read

• Macquarie Group leads $300MM syndicated revolving credit facility for Auramet Read

• ACEN secures $150 million five-year syndicated green term loan Read

• Waga Energy signs $108M syndicated “green” loan Read
  

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

• BB Energy Group secured a USD 400 million 1 Year Revolving Credit Facility with a 1-year extension option

• Alvotech closed a $965 million senior secured first lien term loan facility, maturing in June 2029. The facility includes two tranches: a $900 million term loan with a floating rate of SOFR plus 6.5% per annum and a $65 million term loan at SOFR plus 10.5% per annum

• Advent International is leading a $2.55 billion loan with a seven-year term to finance the acquisition of Nuvei

• Frasers Property Treasury obtained a five-year sustainability-linked loan of S$904 million ($670 million), structured in two tranches

• ACEN Renewables International secured a $150 million five-year syndicated green term loan and revolving credit facility
  

Loan Structures
In today's lending landscape, flexibility reigns supreme. Loan tenors typically range from one to seven years, with BB Energy and Advent International exemplifying the extremes. Mid-term durations of three to five years are the sweet spot, as seen in Lion Electric and ACEN Renewables' deals. Floating rates, often SOFR-based, dominate the scene, while traditional LTV metrics take a backseat to ESG considerations. Multi-tranche structures, like those employed by Frasers Property and Alvotech, are gaining favor, allowing borrowers to fine-tune their debt profiles across currencies and risk levels. This trend reflects a sophisticated approach to corporate finance, balancing short-term agility with long-term strategic planning in an ever-evolving economic landscape.

Tips For Borrowers

1. Consider multi-tranche structures to optimize currency exposure and potentially access better terms, as seen in the Frasers Property loan.

2. Explore partnerships with development banks or government-backed institutions for large-scale infrastructure projects, as evidenced in the Uzbekistan renewable energy financing.

3. Be prepared to provide detailed ESG metrics and improvement plans as sustainability-linked loans become increasingly common.

4. Negotiate terms that allow for voluntary prepayments or accordion features to maintain financial flexibility, as seen in several recent corporate credit facilities.

New Lender Program

• Dominion Financial launches new bridge loan program with 100% financing Read

😲Didn’t see that one coming

• U.S. DOJ probing Arbor Realty over loan practices, Bloomberg reports Read

• Korean banker arrested for $15m loan scheme, crypto spending Read

• Epic Companies declares bankruptcy Read

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