Who Scored Big in Last Week's Jaw-Dropping Loans: Loketch Group $173M, Cliffwater $1.17B, Iron Horse $40M

Good Morning Everyone

This week in Deals:

$796 million in top 10 CRE deals
$2.22 billion in top 10 Growth Cap deals
$117 million in top 10 ABL deals
$2.64 billion in top 9 International deals

Top CRE Lenders
TPG Real Estate Credit, Barings, Northwind Group, Morgan Stanley Private Bank, Synovus Bank, Deutsche Bank, Greystone (Fannie Mae), KeyBank, Sunrise Realty Trust, Southern Realty Trust, and Ocean Bank.

Top Growth Cap Lenders
PNC Bank, Barings, MUFG Bank, Nomura Securities International, KeyBanc Capital Markets, Investec, Cadence Bank, Truist Securities, NXT Capital, Fifth Third Bank, Wells Fargo, Perceptive Advisors, Silicon Valley Bank, Hercules Capital, Great Rock Capital, and Encina Private Credit.

Top ABL Lenders
Forbright Bank, MA Asset Management, eCapital Corp., Utica Equipment Finance, Austin Financial Services, Post Road Equipment Finance, Siena Lending Group, SLR Digital Finance, Celtic Bank, LSQ, and Sallyport Commercial Finance.

Top International Lenders
JPMorgan Chase, HSBC Holdings, Citigroup, ICO, Banco Sabadell, Bastion Management, Hudson Cove Capital Management, LCL, Crédit Agricole Ile-de-France, Nordea Bank Abp, filial i Norge, FocusGrowth Asset Management, European Investment Bank, Clifford Capital, Pentagreen Capital, and CIBC Innovation Banking.

Top Global Loans: https://youtube.com/shorts/FXlL9z12yRY

🌆Top Weekly CRE Deals

• TPG provides $173M bridge financing for Brooklyn multifamily property Read

• Westdale Properties gets $115M for Texas assets Read

• BLDG Management, DWREI pay $116M for NYC office tower with $95M loan Read

• Barings provides $114M refi for new 893K-SF Nevada industrial center Read

• Morgan Stanley provides $89M refi for Refinery Hotel in Midtown Manhattan Read

• Estates Cos. lands $73M construction loan for luxury rental in West Palm Read

• Deutsche Bank lends $70M to build Whole Foods-anchored complex in Doral, Fla. Read

• Invictus Real Estate provides $69M bridge loan for 158-unit Mason Gray Read

• Nuveen, SJC Ventures get $69M for Miami retail project Read

• Olive Tree Management buys two Maryland apartments with $57M acquisition loan Read

Summary

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

• Keybank provided a $19.3 million construction loan and $17.9 million in federal low income housing tax credit equity for Camas Flats, with Fannie Mae supplying an additional $8.2 million in financing for this affordable housing project in Oak Harbor, Washington.

• BWE secured a $28 million fixed-rate loan with two years of interest-only payments from Nationwide Life Insurance Co. for Riverview North, a 240-unit multifamily development in Chattanooga, Tennessee.

• Keystone Mortgage Corp. arranged a $25.7 million fixed-rate bridge loan with a 36-month term to reposition a 140,000-square-foot neighborhood retail center in Upland, California.

• Barings provided a $114 million 5-year, fixed-rate refinancing for Airway Commerce Center, an 893,000-square-foot warehouse and distribution property in Reno, Nevada.

Winners

• Real estate developers specializing in mixed-use and multifamily projects

• Commercial real estate brokers, particularly those specializing in industrial properties

• Bridge lenders

• Lenders specializing in industrial properties

Losers

• Office-focused real estate investment trusts (REITs)

• Real estate appraisers specializing in retail properties

• Traditional office lenders

• Retail-focused lenders

Tips For Borrowers

1. Leverage tax credits and alternative financing sources, such as the combination of C-PACE, historic tax credits, and EB-5 financing used in the Pocketbook Hudson development

2. Explore C-PACE financing for energy-efficient improvements, as seen in the $7 million financing for the Pocketbook Hudson project

3. Be prepared for shorter loan terms and potential interest-only periods, as seen in the 36-month bridge loan for a retail center repositioning in Upland, California

4. Consider life insurance companies for long-term, fixed-rate financing, as demonstrated by Nationwide Life Insurance Co.'s loan for a multifamily property in Chattanooga, Tennessee

💡Top Opportunities:
Mixed-use developments in urban areas, industrial properties near transportation hubs, hotel renovations and refinancing in tourist-heavy areas, retail repositioning projects, mixed-use projects that incorporate affordable housing components, investments in life sciences real estate, and self-storage facilities.

💸Top Weekly Growth Capital Deals

• PNC Bank and Barings arrange $1.175B revolving credit facility for Cliffwater Enhanced Lending Fund Read

• esVolta secures $258M credit facilities for ERCOT storage portfolio Read

• Truist Securities arranges new $250M credit facility for The Pennant Group Read

• NXT Capital closes $202M senior credit facility in support of Kian Capital Partners’ recapitalization of SPATCO Energy Solutions Read

• Fifth Third Bank joins Wells Fargo to increase ExchangeRight REIT credit facility to $100M Read

• Neuronetics announces the closing of up to $90M senior secured credit facility with Perceptive Advisors Read

• Great Rock Capital provides $75M of capital to NWI Aerostructures Read

• Encina Private Credit provides a $75M first-out commitment as a revolver and term loan lender to support a sponsor-owned portfolio company Read

• Thumbtack announces $75M in financing from Silicon Valley Bank and Hercules Capital Read

• Jushi Holdings Inc. refinances existing 1st lien credit facility with $48.5M term loan Read

Top Weekly ABL Deals

• Iron Horse Credit secures a $40M senior credit facility and $5M of subordinate capital Read

• Transportation Leader secures $20M factoring facility with eCapital Read

• Utica Equipment Finance completes $15.5M capital lease Read

• Austin Financial Services closes $12M credit facility to manufacturer of textile floor coverings Read

• Post Road Equipment Finance provides $10MM equipment lease line to synthetic turf manufacturer Read

• Inuvo secures $10M credit line from SLR Digital Finance Read

• LSQ creates $3M invoice finance facility for IT staffing firm Read

• Sallyport Commercial Finance provides $900K for toy distributor Read

• Culain Capital structures $500K accounts receivable financing facility for a temporary placement staffing agency Read

• Solar Panel Maintenance Company improves their operations with a $500K facility from Prestige Capital Read

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

• Jushi Holdings secured a $48.5 million Term Loan maturing in 30 months, featuring a fixed interest rate of 12.25% per annum

• Neuronetics obtained a $90 million debt facility with a 5-year term, utilizing a floating rate based on SOFR plus a 7% margin

• The Pennant Group expanded its credit facility to $250 million, set to mature on July 31, 2029

Winners

• Renewable energy companies are benefiting from the increased focus on sustainable infrastructure

• Healthcare service providers focusing on home health and senior care

• Renewable energy financiers are capitalizing on the growing demand for sustainable infrastructure

• Lenders specializing in complex, multi-component deals, are well-positioned in the current market

Losers

• Brick-and-mortar retail businesses are under pressure from e-commerce

• Conventional food manufacturers might be overshadowed by the buzz around "better-for-you" and innovative food platforms

• Lenders heavily invested in brick-and-mortar retail

• Lenders with rigid lending criteria may find themselves losing out on opportunities in rapidly evolving sectors
  

Tips For Borrowers

1. Consider including equity kickers like warrants to potentially lower interest rates and align interests with lenders.

2. Explore milestone-based tranches to access additional capital as your company grows and achieves key objectives.

3. Leverage strong industry positioning, like Thumbtack's in the home services sector, to negotiate favorable terms such as their recent $75 million facility.

4. Consider combining revolving credit and term loans for asset-heavy businesses, as seen in Great Rock Capital's $75 million facility for NWI affiliates.

💡Top Opportunities:
Renewable energy storage projects, healthcare services catering to the aging population, innovative food companies in the "better-for-you" space, the energy solutions sector, medical technology, the cannabis industry, companies that support the gig economy and remote work, and companies specializing in aviation components.

Top International Deals

• Lenders pile into Keywords Studios' $1.14B buyout loan Read

• Iberdrola backs global renewables plans with €500M loan deal Read

• Propel announces upsized $330M syndicated credit facility Read

• Cegedim secures new €230M financing arrangement Read

• Diana Shipping Inc. signs and draws down $167.3M term loan facility with Nordea Bank Read

• TerrAscend completes $140M debt financing Read

• Haizea Wind secures €35M green loan for advanced manufacturing tech Read

• Clifford Capital and Pentagreen Capital provide $30M green loan to BECIS Read

• CIBC Innovation Banking provides $4.5M CAD growth capital financing to Wisedocs Read
  

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

• EQT AB led a purchase of Keywords Studios Plc, funded by a five-year $1.14 billion loan. The deal, split into a $918 million term piece and a $225 million revolving credit facility, attracted 19 banks.

• Diana Shipping Inc. secured a US$167.3 million six-year secured term loan facility, maturing in July 2030

• Cegedim arranged a €230 million syndicated loan with varied maturities: a 5-year €30 million Tranche A, 6-year €60 million Tranche B, and 7-year €90 million Tranche C

• Iberdrola SA signed a 15-year €500 million syndicated green loan to support renewable energy projects across multiple countries.
  

Loan Structures
The recent wave of high-profile loan deals unveils a nuanced landscape where lenders balance risk appetite with prudent structuring. Multi-tranche facilities, like Cegedim's €230 million syndicated loan, indicate a strategic approach to managing duration risk while offering borrowers flexibility. The inclusion of both amortizing and bullet repayment structures within single facilities suggests tailored cash flow management. Interest rate structures are increasingly sophisticated, with Propel Holdings' 400 basis point margin over SOFR indicating risk-based pricing in fintech. Tightening financial covenants, such as Cegedim's 2.50x leverage ratio and 4.50x interest cover ratio, reflect lenders' cautious stance. The trend towards accordion features, as in BECIS Bioenergy's expandable $30 million facility, emphasizes scalability. Additionally, the emergence of subordinated tranches within syndicated deals indicates an evolving appetite for layered risk and more complex capital stacks in the middle market.

Tips For Borrowers

1. Leverage strong growth metrics: Propel's success in upsizing its facility underscores the importance of demonstrating robust growth and performance data.

2. Optimize collateral packages: Diana Shipping's ability to release two vessels from its mortgage pool while refinancing suggests room for negotiation on collateral terms.

3. Consider innovative structures: Cliffwater Enhanced Lending Fund's $1.175 billion revolving credit facility with expansion options shows the potential for flexible, scalable financing solutions.

4. Explore green financing: The European Investment Bank's €35 million green loan to Haizea Wind Group highlights the growing availability of sustainability-linked financing options.

😲Didn’t see that one coming

• InterVest Capital files $126.4M pre-foreclosure notice at 30 Broad Street Read

• Coinbase’s CB Payments unit fined £3.5M by FCA Read

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