Seniors housing and healthcare lender VIUM Capital ("VIUM") and its joint-venture partner Merchants Bancorp ("Merchants") (NASDAQ: MBIN)
Columbus, OH - March 31, 2023:
Seniors housing and healthcare lender VIUM Capital ("VIUM") and its joint-venture partner Merchants Bancorp ("Merchants") (NASDAQ: MBIN), parent company and registered bank holding company of Merchants Bank of Indiana ("Merchants Bank"), today announced that Merchants Bank, in collaboration with VIUM, as well as ATLAS SP Partners as Structuring Agent and Sole Bookrunner, completed a synthetic securitization referencing over $1.1 billion of first-lien floating-rate skilled nursing and seniors housing bridge loans. In this transaction Merchants Bank issued and sold $158 million aggregate principal balance of Senior Credit Linked Notes representing approximately 14% of the reference pool. Merchants Bank's wholly owned subsidiary, Merchants Capital Corp., will continue to service the loans. Through this transaction it is expected that Merchants Bank will reduce its risk-weighted assets and receive capital relief under current risk-based capital rules.
'This securitization is a novel capital markets solution that further enables us to continue to lean into the healthcare and seniors housing real estate market as a reliable, leading lender," shared VIUM
Co-Founder and Executive Managing Director Steve Kennedy. "It's the first Credit-Risk Transfer securitization of its kind in our industry, exemplifying the capital creativity that is at the foundation of our company."
VIUM Capital worked closely with Merchants' capital markets team and ATLAS SP Partners to effectuate the deal, which included multiple institutional buyers. The transaction does not affect the interest rate or terms of the bridge loans.
"Our healthcare bridge loan portfolio consists of high quality assets producing solid debt service coverage as the loans season for permanent financing through HUD or the GSE's," commented VIUM Co-Founder and Executive Managing Director Kass Matt. "This is a repeatable structure that will be another tool to ensure we continue to provide reliable, cost-effective, term-favorable capital to our healthcare and seniors housing clients."
The transaction follows a record year for VIUM where it closed 70 transactions totaling $2.1 billion and ranked as a top three HUD healthcare lender in both dollar and transaction volume. The firm has funded over $3.5 billion in debt financings across 30 states since it launched just three years ago.
VIUM is based out of Columbus, Ohio and has regional offices in Austin, Texas and Boca Raton,
Florida. The firm is privately owned and controlled. Municipal advisory services for tax-exempt issuers provided through the firm's wholly owned subsidiary, VIUM Capital MA LLC. The company can be reached at viumcapital.com.
Steve Kennedy I Kass Matt email@example.com
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