On April 8th, Solidere SAL closed a $185 million securitization deal through BLC Bank and BSEC-Bemo securitization. The transaction is said to represent the largest asset backed issuance in the local capital markets, with its proceeds aimed at financing the company’s real estate development activity and infrastructure on the waterfront. The newly introduced securitization fund follows a cash flow waterfall structure through the issuance of 3 tranches of “credit enhanced” securities:
A senior Class A of $130M which was subscribed by local banks, a mezzanine Class B of $45M retained by Solidere but that could be resold after the redemption of the Class A, and a junior Class C of $10M that will be held by the “originator” (Solidere) for the overall duration of the transaction. Investors in Class A notes are paid a fixed yearly coupon of 5.0% over a duration of 1.33 years.
LB – Blom