Legacy Debt Purchase

Client: A New York based real estate firm with extensive holdings around the United States in all property types.

Situation: The Reznick Capital Markets team was aware that the sponsor borrowed over $1 billion via a multi-property single-borrower CMBS transaction whose bonds were trading at attractive discounts.  The sponsor was looking to opportunistically buy back their own debt but was unable to source it and did not have a ready understanding of the CMBS structure and various limitations with respect to borrower-affiliate issues.

Solution: Reznick Capital Markets sourced the CMBS bonds on behalf of the sponsor and executed a series of debt buybacks on their behalf.