Unbelievable Loans Last Week: Clearway Energy $700 Million, Aypa Power $650 Million, Tastemakers $20 Million

Good Morning Everyone

This week in Deals:

$2.69 billion in top 10 CRE deals
$1.94 billion in top 10 Growth Cap deals
$76 million in top 8 ABL deals
$3.38 billion in top 10 International deals

Top CRE Lenders
Nord/LB, Société Générale, KeyBanc Capital Markets, DNB, ANZ, TYKO Capital, Goldman Sachs, Wells Fargo, Freddie Mac, Bank OZK, Affinius Capital, Valley Bank, IDB Bank, Mavik Capital Management, Värde Partners, KeyBank Real Estate Capital, LoanCore Capital, and Bank United.

Top Growth Cap Lenders
Apterra Infrastructure, Sagard, Comvest Credit, KKR, Truist Bank, U.S. Bank, Standard Chartered, BlackRock, Synovus Bank, TAB Bank, Westlake Capital, and Vistara Growth.

Top ABL Lenders
SLR Business Credit, Rosenthal & Rosenthal, Gibraltar Business Capital, Wingspire Equipment Finance, The Hedaya Capital Group, and First Business Bank.

Top International Lenders
African Development Bank, Cheyne Capital, Migdal Insurance Company, Davidson Kempner Capital Mgmt, Farallon Capital Mgmt, King Street Capital Mgmt, Washington H. Soul Pattinson & Co., Broad Peak Investment Advisers, Deutsche Bank, Mizuho EMEA, European Investment Bank, CoVenture Management, First Abu Dhabi Bank, and a leading Australian-based global alternative asset manager.

Top Global Loans: https://youtube.com/shorts/MajJklW2tbA

🌆Top Weekly CRE Deals

• Clearway closes $700M financing on California solar and storage portfolio Read

• Miami’s 830 Brickell Secures $565M in Financing Read

• Douglaston, Ares Tee Up $500M CMBS Loan For Hudson Yards Apartment Tower Read

• Philly-Area Owner Secures $285.5M Refinancing On Temple University-Area Apartments Read

• Bank OZK, Affinius Provide $120M Construction Loan for San Jose Industrial Park Read

• Mavik Capital, Valley Bank and IDB Lend $107M on LIC Mixed-Use Tower Read

• Värde funds $105M takeout loan for a California multifamily development Read

• KeyBank Lends $98M on Wisconsin Multifamily Complexes Read

• Goldman Sachs JV Lands $85M Refi for Queens Industrial Asset Read

• Bank United Provides $70M Refi for CUNY Journalism School HQ Read

Summary

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

• Walker & Dunlop closed a $285.5 million refinancing with seven-year fixed-rate Freddie Mac loans for two Goldenberg Group student housing properties near Temple University.

• Värde Partners provided a $105 million floating-rate bridge loan with a three-year term and two one-year extensions for Windy Hill Property Ventures' Artisan Crossing apartment complex in Silicon Valley.

• Axiom Properties secured $98 million in Freddie Mac fixed-rate loans with 5-10 year terms and interest-only periods for three Wisconsin multifamily properties.

• Bank United supplied a $70 million, 10-year fixed-rate loan to refinance a 20-story CUNY office building in Times Square.

Winners

• Owners of stabilized assets in secondary markets

• REITs focused on student housing

• Bridge lenders like Värde Partners

• Freddie Mac lenders focusing on student housing & Multifamily

Losers

• Office property owners, particularly those with older or less prime assets

• Small-scale developers or those with properties in tertiary markets

• Traditional banks focusing solely on conventional office properties

• CMBS lenders might also face headwinds, particularly if they rely heavily on office and retail properties

Tips For Borrowers

1. Highlight the unique selling points of your project, such as its location in a high-growth area, the quality of the asset, and the potential for stable cash flows.

2. Be prepared to provide strong collateral and demonstrate solid market fundamentals, particularly for construction loans in growing sectors like industrial.

3. Consider CMBS loans for large, stabilized assets in prime locations to potentially secure longer terms and competitive rates.

4. Look into agency lending options like Freddie Mac for multifamily assets, which may offer attractive terms including interest-only periods.

💡Top Opportunities:
Student housing market, tech-hub multifamily developments, adaptive reuse of office buildings in prime locations, sustainable and energy-efficient construction methods, and PropTech companies

💸Top Weekly Growth Capital Deals

• Aypa Power secures $650M in upsized corporate facility, the largest in the energy storage industry Read

• Comvest Credit Partners provides $153M senior credit facility for dividend and growth capital to Pro Food Solutions Read

• US’ Trinseo secures $150M financing facility with KKR Read

• Whiskey House of Kentucky secures $145M in long-term capital Read

• Autoliv secures $125M revolving credit facility Read

• Cart dot com secures $105M in debt refinancing from BlackRock Read

• nFusion Capital expands lending capacity with new $75M line of credit agented by Synovus Bank Read

• Westlake Capital Finance, Medalist Partners provide $70M committed warehouse facility to Car Capital Technologies Read

• DataCore secures $60M in funding to accelerate growth and innovation Read

• ATC Managers closes $54.75M deal for business acquisition and term loan Read

Top Weekly ABL Deals

• SLR Business Credit provides $20M line of credit to Tastemakers LLC, creators of Arcade1Up Read

• Rosenthal closes three ABL transactions totaling nearly $20M Read

• Gibraltar Business Capital provides $12.5M to disruptive consumer goods company Read

• Wingspire Equipment Finance's $12M funding initiative to propel aerospace manufacturer Read

• Hedaya Capital provides $5M facility to product development company Read

• First Business Bank funds $3M factoring facility for eco-friendly bottled water company Read

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

• BlackRock provided Cart.com a $105 million, five-year term loan facility to consolidate venture debt and fuel growth.

• Whiskey House of Kentucky obtained a 5-year, $115 million syndicated credit facility from Truist Bank, U.S. Bank, First Horizon Bank, Rabobank, and CoBank.

• ATC Managers closed a $54.7M fixed-rate loan for a business acquisition with a three-year term and two one-year extension options.

Winners

• E-commerce infrastructure providers

• Craft spirits manufacturers

• Syndicated lenders

• Private credit funds

Losers

• Traditional manufacturing & commodities companies in cyclical industries

• Startups in highly speculative fields (biotech or unproven technologies)

• Smaller, single-product lenders

• Hard money lenders, typically offering shorter-term, higher-interest loans
  

Tips For Borrowers

1. Emphasize flexibility and scalability in your financing needs, as seen in the Starco Brands deal, to attract lenders willing to grow with your business.

2. Leverage industry-specific expertise when structuring deals, as exemplified by Truist's involvement in the Whiskey House transaction

3. Consider sale-leaseback arrangements for real estate assets to unlock additional liquidity, as demonstrated in one of the Rosenthal & Rosenthal transactions

4. Demonstrate operational efficiency and market positioning to justify more flexible loan structures and potentially lower rates.

💡Top Opportunities:
E-commerce infrastructure providers, Children's entertainment industry, Craft spirits industry, tech companies in the data management space, pet industry supply chain, companies developing AI and automation technologies for traditional industries, and specialized material producers

Top International Deals

• Transnet receives $1B African Development Bank loan Read

• New Fortress Energy secures $700M loan for second FLNG unit in Mexico Read

• Cheyne Capital provides €525M ($679.4M) senior loan to Fattal Hotels to support refinancing of four London hotels Read

• Golden Energy Group inks $600M private loan for coal deal Read

• WildBrain announces new $415M senior secured credit facility Read

• Cain completes £124M ($159.4M) refinancing at Shoreditch mixed-use scheme Read

• Autoliv secures $125M revolving credit facility Read

• Serbian DSO receives €80M ($86.9M) loan for 400,000 smart meters Read

• Recurrent Energy secures Italian €50M ($54.3M) PV loan Read

• Digitt secures $50M from CoVenture to help prime borrowers in Mexico pay off predatory credit card debt Read
  

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

• WildBrain secured a five-year $415 million Senior Secured Credit Facility from Sagard and Comvest Credit Partners, with interest at SOFR plus 5.5-6%

• Fattal Hotel Group obtained a £525 million senior loan from Cheyne Capital for a 5-year term

• Cain International and partners refinanced The Stage's commercial components with a £124M loan from Mizuho EMEA, featuring a four-year term

• A consortium led by Golden Energy and Resources Pte Ltd. signed a $600 million loan with a five-year tenor, paying around 800 basis points over SOFR
  

Loan Structures
The loan structures reveal a nuanced approach to risk management and yield optimization in the current market. Shorter tenors, like Tenet Fintech's 24-month repayment term, suggest lenders are prioritizing liquidity and limiting long-term exposure. Elevated interest rates are being offset by equity-linked components such as warrants, indicating a preference for upside participation over pure yield. Covenants, though not detailed, are likely more stringent, with tighter operational controls and frequent reporting expected. This structure - combining shorter tenors, equity kickers, and tighter covenants - reflects lenders balancing yield needs with economic uncertainty, while providing borrowers the flexibility to execute strategic plans.

Tips For Borrowers

1. Consider flexible drawdown structures to optimize capital efficiency and minimize interest expenses, as demonstrated by Tenet Fintech's credit facility.

2. Align financing milestones with operational achievements to build lender confidence, as seen in New Fortress Energy's FLNG project financing.

3. Explore creative collateral arrangements, such as Litigation Lending Services' $35 million facility backed by litigation outcomes.

4. Explore multi-tranche facilities that combine term loans and revolving credit, as seen in the WildBrain deal, to address both long-term and short-term capital needs

5. Look for lenders willing to offer covenant-lite structures, like in Autoliv's case, which can provide greater operational freedom

New Lender Program

• Revolut launches a personal loan product in Italy Read

• LandX Finance and Dominion revolutionize grain inventory financing Read

😲Didn’t see that one coming

• Pizza Hut franchisee EYM files for Chapter 11 bankruptcy protection Read

• Home retailer Conn’s to close 71 doors amid Chapter 11 speculation Read

• Vintage Wine Estates, Inc. announces bankruptcy filing and voluntary delisting and SEC deregistration Read

• Gotham Restaurant owner files for Chapter 11 bankruptcy protection Read

• 2U, once a giant in online education, files for Chapter 11 bankruptcy Read

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