Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 29 July 2020

Watermark Lodging Gets Capital Infusion from Oaktree, Ascendant

Watermark Lodging Trust Inc., which last month had warned about its ability to remain a "going concern," has raised $200 million from Oaktree Capital Management and Ascendant Capital Partners, allowing it to stabilize its balance sheet and possibly pursue opportunistic investments. Oaktree and Ascendant could invest up to another $250 million, giving Watermark a lifeline as most of its properties have had their cash flow trapped by lenders.

Commercial Real Estate Direct Staff Report

Watermark Lodging Trust Inc., which last month had warned about its ability to remain a "going concern," has raised $200 million from Oaktree Capital Management and Ascendant Capital Partners, allowing it to stabilize its balance sheet and possibly pursue opportunistic investments.

The two investment managers made their commitment through a purchase of preferred equity and agreed to invest up to another $250 million through additional preferred-equity purchases over the next 1.5 years. They also received warrants to buy up to 6.75 percent of Watermark's common shares.

The preferred shares that the two purchased pay a coupon of 12 percent. They have priority over the company's common shares for distributions, which could come in the form of additional preferred shares. The dividends the preferred shares earn also accrue if they're unpaid. They're to be redeemed in five years.

Like other legacy non-traded REITs, Watermark was designed to eventually have a liquidity event, in the form of a listing of its shares, sale of assets or merger with another company. Under its...





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage