Temple View Capital (TVC), an institutional-grade private money lender specializing in commercial real estate loans backed by 1-4residential collateral for borrowers nationwide, announced on January 31st, 2020, that it had closed its first securitization deal of Residential Transitional Loans (RTL) (“2020-RTL1”), issuing nearly $176 million on non-rated, asset-backed securities originated and serviced by TVC. Most impressively, the bond issuance was a whopping six times oversubscribed, pulling in $869M worth of bids compared to the $148M TVC asked for.
“We are excited to broaden our reach and investor base with this securitization deal,” said co-Founder and Partner Michael Niccolini. “It not only allows us to pass through more competitive rates to our borrowers, but also reduces our risk by diversifying our lending portfolios.”
The A1 deal—structured as a 24-month revolving period—allowsTVC to dedicate assets to the bond through January 2022, providing them with more leverage and the ability to expand their loaning abilities, all while providing a more stable source of capital to fuel loan production and accelerate growth as the company nears $2B in available assets to lend. The two-year revolving period in the deal will be utilized to reinvest loan payoffs into new loans. The deal was co-led by Goldman Sachs and Nomura, who also served as the book runners.
“To say that the offering was well-received would be a dramatic understatement,” explained co-Founder and Partner Steven Trowern. “Our story and our platform clearly resonated with bond investors and by the end of marketing we were more than 6 times oversubscribed.”
The prospect of striking securitization deals offers investors increased market liquidity and generally more protection by way of collateral overages and/or guarantees by entities with high and stable credit ratings. By liquidating assets, the process frees up capital for the originator and provides income for investors—a win-win for both parties.
A nationwide private lender, TVC specializes in financing solutions geared towards investors and brokers. For more information, contact us today.