Merchants Capital, a financial services provider based in Carmel, IN, recently announced the completion of more than $3 billion worth of securitizations since the formation of its capital markets group in 2020. The most recent securitization totaled $1.1 billion and was completed at the end of March 2021.
The transaction involved a team effort between Merchants Capital’s capital markets group alongside leading seniors housing and healthcare lender VIUM Capital and structuring agent ATLAS SP Partners to securitize first-lien floating-rate skilled nursing and seniors housing bridge loans with Merchants Bank of Indiana issuing Senior Credit Linked Notes totaling an aggregate principal balance amounting to approximately 14% ($158 million) from the reference pool. This reduction in risk weighted assets for this loan pool supports further growth opportunities for both Merchants Capital as well as VIUM Capital while also providing additional lending capacity for both entities moving forward.
This synthetic securitization comes just six months after closing on another one valued at $1.2 billion related to multifamily bridge loans back in September 2020..
Merchants will continue servicing these loans going forward ensuring that their clients receive quality service throughout all stages associated with such transactions
