#United States #Chicago #Mesirow #SASB #Structured Debt

Mesirow Expands Its Structured Debt Capabilities

In a significant move within the commercial mortgage-backed securities (CMBS) market, Mesirow, a well-respected independent financial services firm, has launched its Single-Asset Single-Borrower (SASB) platform. This new initiative is designed to cater to the increasing demand for flexible and tailored financing solutions, particularly for smaller transactions that previously could not secure such customized options.

Meeting Market Demands

With the ever-evolving landscape of debt capital markets, Mesirow recognizes the growing needs of sponsors looking for versatile financial structures. The SASB platform aims to fill this gap by offering transactions that begin at $50 million, a distinctive feature that sets it apart in a market typically dominated by larger deals. As Nat Sager, President and Head of Strategy of Mesirow Capital Markets, articulates, the ability to customize financing solutions historically catered to larger issuers is now accessible to smaller transactions.

Mesirow’s SASB platform enables firms to gain access to the efficient CMBS markets while receiving personalized solutions that align closely with their unique business objectives.

Successful Inaugural Transactions

The platform's official launch has already been marked by success, with two significant transactions completed in 2024: a $115 million financing for Legends Outlets, a prestigious retail location, and $45 million financing for Reunion Resort, which is recognized as a top-tier golf and country club. These deals not only highlight Mesirow's stronghold in the SASB space but also reflect the firm’s commitment to supporting smaller-capital transactions while maintaining institutional-quality execution.

Unique Offerings and Benefits

Mesirow’s SASB platform is built on several key differentiators that enhance its appeal:

• - First-Loss Position: Mesirow takes the first-loss position on deals, thereby ensuring certainty of execution. This model promotes investor confidence and aligns with institutional investors’ expectations.
• - In-House Loan Servicing: By acting as the Administrative Agent post-closing, Mesirow maintains close communication between borrowers and certificate holders in the securitization trust. This approach mirrors the relationship management processes prevalent in large bank syndication, providing a high-touch experience for clients.
• - Competitive Bond Distribution: Backed by a robust Institutional Sales & Trading (IST) team, Mesirow successfully placed all bonds issued in these inaugural transactions, underscoring its strength in market reach and execution.

As Andrew Minkus, Senior Managing Director and Co-Head of Mesirow CTL and Structured Debt Products notes, “Our SASB platform enables us to deliver bespoke capital solutions that address both immediate and long-term strategic needs.” This is a crucial factor as the demand for uniquely structured real estate financing continues to rise in today's market.

Investment in Talent

In a move to fortify its SASB platform capabilities, Mesirow is also investing in new professionals, including seasoned capital market experts Thomas Chang and Simon Mui. Their addition brings over 20 years of experience in CMBS, enhancing Mesirow’s ability to structure and implement complex transactions effectively.

About Mesirow

Founded in 1937 and headquartered in Chicago, Mesirow is an employee-owned firm that prioritizes a personalized approach to financial goals, along with a strong commitment to social good. Their services span various areas, including Global Investment Management and Capital Markets.

The firm has received numerous accolades, including recognition by Crain's Chicago Business as one of the Best Places to Work. Mesirow continues to push the boundaries in financial services, demonstrating excellence in crafting customized solutions in a dynamic market.

For more information on how Mesirow's SASB platform can benefit your financing strategy, visit mesirow.com.