M360 Advisors Completes $329.7 Million Commercial Real Estate CLO
Aug. 01, 2018
LADERA RANCH, Calif., Aug. 01, 2018 (GLOBE NEWSWIRE) -- M360 Advisors, LLC (“M360 Advisors” or “M360”) today announced the closing of a $329,737,087 collateralized loan obligation transaction ("CLO") issued by M360 2018-CRE1, Ltd. (the “Issuer”) and M360 2018-CRE1, LLC (together with the Issuer, the “Co-Issuers”), subsidiaries of MCREIF SubREIT, LLC ("M360 REIT"), a private REIT managed by M360 Advisors, the “Collateral Manager” for this transaction. M360 Advisors is an investment management company and wholly-owned subsidiary of Money360, Inc., a technology-enabled direct lender specializing in commercial real estate loans, with over $800 million in loans originated since inception.
The Co-Issuers offered and sold investment-grade-rated senior notes to institutional investors via a private placement. Subordinated notes (together with the senior notes, the "Notes") and preferred shares of the Issuer were acquired and will be held by a subsidiary of M360 REIT. The Notes are collateralized by assets initially consisting of 48 commercial real estate loans that include whole loans and senior participations secured by 59 properties. The transaction includes a one-year reinvestment period during which the Issuer through the Collateral Manager may use loan asset proceeds to purchase additional eligible loan assets. The initial portfolio consists of fixed rate obligations with a weighted average coupon of approximately 8.35% per annum.
"This transaction provides us with attractive financing for our ongoing loan origination platform, which will allow us to further scale our business," said Evan Gentry, M360 Founder & CEO. "The close of this CLO is a milestone for our company and an indication of the progress we've achieved in a short timeframe."
M360 Advisors manages commercial mortgage debt portfolios of approximately $525 million as of July 31, 2018. This is M360 Advisors’ first commercial real estate CLO transaction.
“This is an important step in the growth of our firm,” said Dan Vetter, M360 Co-Founder and President. “In addition to increasing our leverage and further expanding our funding sources, the closing of this transaction provides us with significant additional liquidity in the form of cash and revolving credit capacity to fund future growth.”
J.P. Morgan Securities LLC acted as sole structuring agent, lead manager and bookrunner. Waterford Capital, Inc. acted as co-manager. M360 was advised in this transaction by Finitive LLC. The offered notes were rated by Moody's Investors Service and Kroll Bond Rating Agency.
About M360 Advisors
M360 Advisors is a U.S.-based investment management company that manages alternative investment vehicles for institutional and accredited retail investors. M360 Advisors’ fund offerings are designed to provide a short-duration, high-yield, low-volatility alternative to traditional fixed income investments, while also providing significant collateral protection and reasonable liquidity. Fund offerings are designed for international tax efficiency and have attracted institutional investors throughout the world. M360 Advisors benefits from proprietary deal flow sourced by its affiliate, Money360, Inc., a vertically-integrated direct lender that originates commercial real estate loans collateralized by office, industrial, multifamily, hospitality and retail property types.
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