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Värde Partners Completes $208 Million Issuance of Notes Secured by Real Estate Loans and Assets
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March 13, 2017
MINNEAPOLIS – Värde Partners, an alternative investor in broad strategies including commercial and residential mortgage markets, today announced that certain of its subsidiaries completed the issuance of $208.5 million in notes secured primarily by real estate loans and assets. The notes yield 3.60%.
“We are very pleased with the execution of this transaction and the strong demand for the bonds demonstrates both the strength of Värde’s mortgage platform and the quality of the underlying portfolio,” said Partner Brian Schmidt.
The securitization -VSD 2017-PLT1 is the fourth securitization executed by Värde Partners. The VSD 2017-PLT1 was unusual in that notes are primarily secured by a pool of seasoned performing and sub-performing secured and unsecured commercial loans. The notes are rated BBB- by Kroll. The structure also allows the Issuer greater oversight of the Servicer by providing consent rights over certain actions that the Servicer might take in respect to the assets. Typically, within Liquidating Trust structures, these actions would be pre-agreed to through the development of business plans for each asset.
“With this structural nuance, Värde will be able to provide the oversight of the servicer that will benefit both bondholders and the fund’s limited partners,” said Jeff Thuringer, Senior Managing Director.
The portfolio consisted of $378 million of outstanding mortgage balance through 201 individual assets. Over 93% of the portfolio was performing as agreed.
Credit Suisse advised the transaction.
About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit- oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world including New York.