Wall Street's Wildest Week of Loans: Fortress $708M, Nabors Industries $475M, Aequum $30M

Good Morning Everyone

This week in Deals:

$2.15 billion in top 10 CRE deals
$950 million in top 10 Growth Cap deals
$49 million in top 8 ABL deals
$2.79 billion in top 10 International deals

Top CRE Lenders
Deutsche Bank, Goldman Sachs, U.S. Department of Energy, ECP ForeStar, Copenhagen Infrastructure Partners, Japan Green Investment Corp. for Carbon Neutrality, Northwestern Mutual Life Insurance, Affinius Capital, Centennial Bank, Monroe Capital, Franklin BSP Realty Trust, RXR Realty Investments, PGIM

Top Growth Cap Lenders
Citibank, Morgan Stanley, Wells Fargo, Goldman Sachs, HSBC, MUFG, BC Partners, Main Street Capital Corp, Huntington Business Credit, Proterra Investment Partners and Farm Credit Services of America, Post Road Equipment Finance, CIT Northbridge, White Oak Commercial Finance, Mountain Ridge Capital, CIBC Innovation Banking

Top ABL Lenders
Aequum Capital, eCapital, InterNex Capital, Utica Equipment Finance, LSQ, Austin Financial Services, King Trade Capital, Celtic Capital

Top International Lenders
Deutsche Bank, Nord/LB, MUFG, ANZ, DBS Bank, Export Development Canada, Sumitomo Mitsui Banking Corp, Blackstone Credit & Insurance, Blue Owl Credit, Trafigura, Itaú BBA

Lender of the Week
Deutsche Bank-Fortress Investment Group $708M Portfolio Loan, SES S.A. $1B Acquisition Loan, Zilch $107M Loan

Top 10 Global Loans: youtu.be/4kvSIj7ACO8

🌆Top Weekly CRE Deals

• Fortress closes first-of-its-kind $500M industrial outdoor storage deal Read

• Alexico Group seals $335M refi for Manhattan’s The Mark Hotel Read

• Solugen awarded $214M loan guarantee for Bioforge Read

• Aymium closes $210M financing with global investors for advanced biocarbon production facility Read

• Northwestern Mutual provides $165M refi to JP Morgan for Midtown rental tower Read

• Affinius Capital refis Long Beach, NY resi tower with $150M loan Read

• East End Studios seals $130M construction loan for LA production space Read

• Fundrise gets $125M loan from Franklin BSP Realty Trust Read

• RXR Realty Investments makes $120M construction loan on Ray Phoenix Read

• PGIM refis NYC self-storage portfolio with $100M loan Read

Key Insights

• IOS assets are increasingly being treated similarly to traditional industrial buildings from a capital markets perspective

• Luxury hotel properties in prime locations continue to attract significant financing

• Government support for sustainable and innovative manufacturing solutions is growing

Winners

• Real estate developers pursuing IOS projects

• Sustainable manufacturing companies

• CMBS lenders

• Government-backed lenders

Losers

• Traditional industrial property owners

• Non-luxury hotel operators

• Traditional balance sheet lenders

• Lenders without ESG expertise

Loan Structures
Lenders are treading cautiously, favoring shorter-term commitments and maintaining a watchful eye on the market's pulse. The prevalence of 18-month to 36-month bridge loans and construction financing suggests a preference for flexibility and frequent reevaluation of deals. While specific loan-to-value ratios remain elusive, the overall sentiment points to conservative leverage practices, with borrowers often required to bring more equity to the table. This mix of senior debt, mezzanine financing, and equity components underscores the need for creative structuring in a market where lenders are focusing on existing assets with value-added potential and new developments backed by strong sponsors.

💡 Top Markets/Opportunities:

CRE Lenders Focus:
1) Industrial outdoor storage
2) Luxury hotels in prime location
3) Renewable energy developers, utilities, and equipment manufacturers
4) Sustainable manufacturing projects

CRE Developers Focus:
1) Luxury hotel brands and focus on acquiring prime real estate in major metropolitan areas
2) Development of green manufacturing plants and explore partnerships with companies in the sustainable production sector
3) Partnerships with entertainment companies and focus on acquiring land in media hubs like Los Angeles, New York, and Atlanta

CRE Investors Focus:
1) Acquisition of well-located multifamily assets in major cities and explore value-add strategies to enhance returns
2) Investing in content production facilities and exploring sale-leaseback opportunities with established entertainment companies
3) Acquiring well-located industrial properties in growing markets and exploring opportunities to develop last-mile distribution centers

CRE Brokers Focus:
1) Target IOS operators and owners
2) Building relationships with luxury hotel owners and developers to assist them in obtaining favorable loan terms.
3) Target multifamily developers and owners to offer my expertise in securing construction and permanent financing

💸Top Weekly Growth Capital Deals

• Nabors announces amendment and restatement of $475M credit facility Read

• Hecate Grid secures $125M letter of credit facility package with MUFG Read

• Princeton Medspa Partners closes $120M growth financing Read

• ZRG secures $120M in debt financing Read

• Huntington Business Credit closes $70M to support Stellex Capital Management’s acquisition of The James Skinner LLC Read

• Post Road Equipment Finance closes $40M renowned diversified radio and TV broadcasting company Read

• CIT Northbridge Credit provides $35M revolving line of credit to Network Wireless Solutions Read

• White Oak Commercial Finance expands factoring facility to $25M for worker management software company Read

• Post Road Equipment Finance closes $20M renowned diversified radio and TV broadcasting company Read

• Mountain Ridge Capital provides $20M credit facility to apparel manufacturer Read

Top Weekly ABL Deals

• Aequum Capital provides $30M in credit facilities to leading print, marketing, and logistics service provider Read

• eCapital doubles down on startup success: upsizes invoice factoring facility to $5M for thriving international food distributor Read

• InterNex Capital announces $5M facility to civil engineering company Read

• Utica Equipment Finance completes $3.5M capital lease with concrete, masonry recycling company Read

• LSQ creates $3M invoice finance facility for Florida-based internet service provider Read

• Austin Financial Services closes a $2.5M credit facility to a privately-owned life sciences company Read

• King Trade Capital provides a $1.5M purchase order finance facility to a dry foods manufacturer Read

• Celtic Capital provides $1M accounts receivable line of credit to lighting fixtures manufacturer Read

Key Insights

• Lenders showed a willingness to finance companies in rapidly evolving industries like renewable energy, artificial intelligence, and life sciences

• There was a notable trend of lenders supporting companies' expansion plans, whether through acquisitions, new facility openings, or equipment purchases

Winners

• Media companies

• Technology startups in cutting-edge fields like artificial intelligence

• Equipment financing firms

• Specialty finance companies focusing on niche industries

Losers

• Traditional brick-and-mortar retailers

• Businesses with highly seasonal cash flows, such as some consumer goods companies

• Traditional banks with conservative underwriting criteria

• Lenders heavily focused on industries facing disruption or secular decline

Loan Structures
The most common tenor of these loans appears to be in the range of 3-5 years, with a mix of revolving credit facilities and term loans. LTVs seem to be on the higher end, suggesting that lenders are comfortable with the collateral and growth prospects of the borrowers. Covenants are likely to be present, but the specifics vary depending on the industry, the creditworthiness of the borrower, and the lender's risk appetite. The structure of these loans is diverse, with a blend of asset-based lending, factoring, purchase order financing, and cash flow-based facilities tailored to meet the unique needs of each borrower.

💡 Top Markets/Opportunities:
Asset-Based/Growth Cap Lenders Focus 
1) Companies involved in standalone energy storage projects
2) Medspa acquisition platforms looking to refinance existing debt and fund acquisitions in this growing market
3) Companies that provide data-driven executive search and talent solutions
4) Broadcasting and media companies investing in new equipment and facilities could be worth financing

Family Offices Focus
1) Battery technology, grid infrastructure, and energy management software that support the growth of renewable energy
2) Skincare product manufacturers, beauty tech startups, and wellness centers that can benefit from the medspa boom
3) HR tech startups, corporate learning platforms, and employee wellness solutions that can help businesses improve talent development and retention

Private Equity Firms Focus
1) Food processing plants, logistics companies, and ag-tech startups that can enhance the efficiency and reach of food distribution businesses.
2) Waste management companies, sustainable construction material manufacturers, and recycling technology providers that can benefit from the growing demand for eco-friendly building solutions
3) Companies that offer last-mile connectivity solutions, 5G infrastructure providers, and IoT startups that can capitalize on the expanding wireless internet market

Brokers Focus
1) Connect companies with highly seasonal cash flows to PO lenders
2) Seek out high-growth startups across various industries and help them secure factoring facilities that can provide the necessary liquidity to support their expansion plans.

Top International Deals

• SES announces successful syndication and raising of €3 billion acquisition financing Read

• Tata Communications secures $250M sustainability loan from foreign banks Read

• Hudco enters syndicated loan market with $200M financing Read

• TravelPerk acquires AmTrav to accelerate US expansion and announces new $135M backing from Blackstone and Blue Owl Read

• Fintech Zilch secures £100M financing deal to support expansion strategy Read

• Carro bags $55M loan from HSBC’s $1B ASEAN Growth Fund Read

• K92 Mining announces upsized senior secured credit facilities by $50M and offtake agreement with Trafigura Read

• Omnigen Energy gets $46M financing to develop 20 solar power plants in Minas Gerais Read

• Santhera secures up to $39M in royalty and debt financing to fund operations to cash flow break-even Read

• Okeanis Eco Tankers secures $31m loan for suezmax re-purchase option Read
  
  

Top Global Loan Spotlight

An international group of banks led by Deutsche Bank is lending €3 billion to SES S.A. for the acquisition of Intelsat S.A. in the satellite communications industry, structured as a €2.1 billion bridge facility and $1 billion term loan. The sophisticated financing structure, combining short-term certainty with long-term flexibility, positions SES to capitalize on future industry consolidation opportunities or navigate potential market disruptions.

😲 Didn’t see that one coming

• Fisker Group Inc. files for Chapter 11 Read

• Eastern Mountain Sports, Bob’s Stores file for bankruptcy Read

• DermTech files for voluntary Chapter 11 protection Read

• Macerich hands over Santa Monica Mall to lender after default Read

• BGO hands over D.C. office building to lender after buying it for $175M Read

• Investor pleads guilty to $54.7M mortgage fraud conspiracy Read

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