News & Events
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intelligence
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February 28, 2021
Commercial Banking
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JPMorgan among underwriters for DigitalOcean IPO
Feb 25 -
DigitalOcean filed a proposed IPO, however the number of shares to be offered and the price range have yet to be determined. JPMorgan, Morgan Stanley and Goldman Sachs are acting as lead book-running managers. Bank of America, Barclays and KeyBanc are acting as joint book-running managers for the offering. Canaccord Genuity, JMP Securities and Stifel are acting as co-managers for the proposed offering.
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Citigroup, JPMorgan advise Coinbase on IPO filing
Feb 25 -
Coinbase filed to go public via a direct listing. The company won't raise any proceeds in the transaction and would be the first such listing on Nasdaq, as other recent candidates opted to delay their IPO or go on the NYSE. JPMorgan, Goldman Sachs, Allen & Company and Citigroup are serving as financial advisors for the listing.
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JPMorgan shutters private banking business in Mexico
Feb 24 -
JPMorgan is shutting its private banking business in Mexico, as wealthy clients in some of Latin America's largest economies move their money to international financial capitals. The bank will refer local business to BBVA Mexico. JPMorgan will serve clients from Mexico through its platform outside of the country and provide investment banking, trading and treasury services within Mexico. Many of the policies of President Andres Manuel Lopez Obrador, including a tax crackdown, have pushed some families in Mexico to transfer more wealth abroad. Offshore accounts represent the majority of JPMorgan's private banking business in Mexico.
Real Estate Finance
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Oaktree provides $64M condo inventory loan on Crown Heights development
Feb 26 -
Oaktree Capital Management provided $63.7 million in condominium inventory financing to a partnership between LIVWRK and CIM Group on a 12-story, residential condo development in Crown Heights, Brooklyn. The condo inventory financing, which allows the JV borrowers to retire previous construction debt and hold existing, available residences for sale down the line, was made on the duo's asset at 111 Montgomery Street. Previous debt from Bank OZK that was used to build it was taken out in this deal. The development features 163 condo residences, which span more than 121,500 square feet, as well as 112 storage spaces and an underground parking garage with 69 spots. Amenities offered at the location include a landscaped rooftop terrace, a lounge, a children’s play area, a fitness center and a community garden for residents.
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MetLife provides $81M loan on D.C.-area apartment complex
Feb 26 -
MetLife Investment Management provided $80.5 million in debt to Washington Property Company to finance a newly built apartment community called Solaire 8250 in Silver Spring, Md. The asset, Solaire 8250, stands 20 stories tall and spans 470,000 square feet, including 15,000 square feet of ground-level retail space. It comprises 338 luxury studio, one- and two-bedroom residences and sports a rooftop swimming pool, a fitness center, a club room with a conservatory, and a courtyard with barbecue spaces. It also has three levels of subterranean parking. Monthly rents currently range from just over $1,650 for studios to around $4,500 for two-bedrooms.
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Tricon Residential recapitalizes $1.3B U.S. portfolio
Feb 26 -
Tricon Residential entered into a JV with two institutional investors, which have purchased a combined 80% stake in the firm's 23-property residential portfolio. Tricon will retain a 20% interest in the portfolio, which has a total value of $1.3 billion. Tricon will use $425 million from the recapitalization to pay off outstanding debt and for general corporate purposes. Tricon is also working with its new institutional partners to form a JV to acquire multifamily properties in the U.S. The partnership would target assets in the Sun Belt to diversify and scale the portfolio.
Commercial Bankruptcy
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Ann Taylor owner Ascena gets Chapter 11 plan approval
Feb 26 -
A Virginia bankruptcy judge approved former Ann Taylor owner Ascena Retail Group's Chapter 11 plan, overruling objectors claiming the plan's legal releases were too broad and nonconsensual. The judge approved the plan to distribute to creditors what's left of the money Ascena raised selling Ann Taylor and its other retail assets, finding that parties with legal claims released under the plan had been given sufficient time to preserve their rights. Ascena hit Chapter 11 in July with $1.6 billion in funded debt, $1.27 billion of that outstanding from the $1.8 billion it borrowed for its 2015 acquisition of the retail chains Ann Taylor, LOFT and Lou & Gray. In December, the court approved the sale of those stores to Sycamore Partners for $540 million. Earlier in the year, Judge Huennekens approved Ascena's $90 million sale of teen apparel chain Justice and its $41 million sale of clothing retailer Catherines.
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Commercial Chapter 11 cases soared in 2020
Feb 26 -
In 2020, commercial Chapter 11 bankruptcy filings climbed to their highest levels in recent years, as COVID-19 disruption sparked sharp declines in GDP and volatile stock market swings. Notably, the pandemic accelerated the restructurings of some companies that were already on the precipice of financial distress, particularly in the retail, energy, travel and hospitality sectors. Year-on-year commercial Chapter 11 filings increased 29% in 2020. The 7,128 filings in 2020 were the most since 2012, which saw 7,789 filings, according to data prepared by Epiq for the American Bankruptcy Institute. However, after a significant spike in the number of commercial chapter 11 filings in Q2 and Q3 2020, the pace of new Chapter 11 filings slowed significantly toward the end of the year.
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Judge approves Chapter 11 bankruptcy plan for Belk chain
Feb 25 -
A judge approved Chapter 11 bankruptcy plans for Belk, creating a new infusion of capital and cutting the debt load for the beleaguered department store chain. The approval provides the ailing chain with financial breathing room as it wrestles with the ongoing COVID-19 pandemic. It's the first step in a plan in which owner Sycamore Partners transfers a large stake of the company to its lenders while maintaining control.
