market
intelligence
briefing

Commercial Banking

• BofA, NACA partner to provide $10B in subprime mortgages

  
  Oct 14 -
  Bank of America is partnering with the Neighborhood Assistance Corporation of America to give out $10 billion in mortgage commitments to borrowers with non-traditional backgrounds. The fixed-rate loans will be given out at a series of events across the country and will be for 15- or 30-year terms, with approved borrowers putting no money down. The events will use “character-based lending criteria” to assess potential borrowers’ ability to pay for a mortgage.
  

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• Deustche Bank, Citi, JPMorgan part of group providing $3.8B in financing for Egypt

  
  Oct 11 -
  Deutsche Bank, Citigroup and JPMorgan are part of a consortium of lenders providing $3.8 billion in financing to Egypt as the country tries to boost its stockpile of foreign-currency. The financing replaces a $3.1-billion agreement that's set to expire in November. Other banks in the consortium include HSBC, Credit Suisse and First Abu Dhabi Bank.
  

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• Deutsche Bank adds two managing directors to San Francisco, L.A. offices

  
  Oct 10 -
  Wendy McMillan and Richard Aguiar will be based out of the San Francisco and L.A. office, respectively. McMillan was previously a managing director at wells Fargo Securities in the investment solutions group, while Aguiar was previously a senior relationship manager with U.S. Trust.
  

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Real Estate Finance

• Deutsche Bank leads $500M refinancing for Silicon Valley office building

  
  Oct 12 -
  Deutsche Bank led a $500 million CMBS refinancing for part of the Moffat Towers office complex in Sunnyvale, Calif. The debt includes $80 million in senior financing, as well as $204 million in senior loans and $216 million in mezzanine financing. Goldman Sachs also participated in the refinancing. The borrower was identified as the Jay-Paul Company.
  

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• Midtown Capital purchases Florida mixed-use development for $78.2M

  
  Oct 12 -
  Midtown Capital Partners acquired the Downtown Dadeland development for $78.2 million. The property, located at 7270 North Kendall Drive, contains 126,000 square-feet of ground-floor retail space and 416 condos, as well as more than 500 parking spaces across seven buildings. The retail portion of the property is currently 97% leased, with tenants such as Pasión del Cielo, West Elm, Orangetheory Fitness, Ghee and Harry’s Pizzeria. The seller of the property was a JV Pebb Capital and Duncan Hillsley Capital.
  

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• Quadrum Global sells stake in UWS rental building for $130.9M

  
  Oct 12 -
  Simon Baron development bought out partner Quadrum Global’s stake in a rental building on New York’s Upper West Side for $130.9 million. With the deal, Simon Baron owns a 97.8% stake in the building located at 393 West End Ave. The property encompasses 134,200 square-feet across 16 stories and includes 114 units. The transaction was funded through a loan from Ascend Real estate Partners.
  

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Commercial Bankruptcy

• Sears files for Chapter 11, will close 142 store by year's end

  
  Oct 15 -
  Sears Holdings filed for Chapter 11 protection, with plans to close around 142 stores by the end of the year. The struggling department store chain had an out-of-court restructuring proposal from former CEO Eddie Lampert, which was rejected by creditors. The retailer is also considering shrinking its store base, however, many lenders are pushing for liquidation.
  

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• Westmoreland Coal files for Chapter 11

  
  Oct 9 -
  Westmoreland Coal filed for bankruptcy protection and will sell its mining business to a group of lenders as it tries to reduce its $1.4-million debt load. The filing follows a drop in sales and production volumes due to volatile prices and increased competition from natural gas. The company signed a restructuring support agreement with a lender group, which agreed to serve as a stalking horse bid in a potential bankruptcy auction. As part of the agreement, the lender group will provide $110 million in debtor-in-possession financing to fund Chapter 11 proceedings.
  

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• Mattress Firm files for Chapter 11, plans to restructure $3.3B debt load

  
  Oct 5 -
  Mattress retailer and distributor Mattress Firm filed for Chapter 11 protection, with plans to use a prepackaged plan to restructure $3.3 billion in debt. The company cited aggressive growth and merger strategy, in addition to a restrictive debt structure as the primary reasons for the filing. The plan includes $250 million in debtor-in-possession financing, consisting of a $150 million revolving credit line and $100 million in secured debt provided by a non-debtor affiliate of the retailer’s parent company. In addition, the company secured commitments for $525 million in senior secured credit facilities. The company hopes to emerge from bankruptcy within 45 to 60 days.
  

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