Roc360 Announces the Closing of its Inaugural Residential Bridge Loan Securitization
We have some news to share this morning. The following release crossed Business Wire today, October 20, 2021 at 12:16 PM Eastern Daylight Time.
NEW YORK–(BUSINESS WIRE)–Roc Capital Holdings LLC (“Roc360”) a vertically integrated digital platform for residential real estate and a leading originator of investor loans nationwide, is pleased to announce the closing of its inaugural syndicated revolving securitization of residential transitional loans. Roc360 sources its loans using a multichannel approach both through its network of private lenders for whom the company acts as the nation’s leading white-labeled capital provider, seamlessly providing its clients capital, technology, and leads, and through its data science driven direct to borrower subsidiary Haus Lending.
Roc360 acted as sponsor and through its various wholly-owned subsidiaries, underwrote, originated, and table funded all of the initial mortgage loans included in the transaction. The Roc Mortgage Trust-2021-RTL1 securitization was structured with total offered notes of approximately $200.790 million across two classes of senior notes and one class of mezzanine notes. None of the offered notes will be rated by any rating agency.
The securitization represents interest in a pool of performing, fixed-rate, interest-only, first lien mortgage loans to real estate investors, with eligible collateral encompassing transitional one-to-four-family residential, multifamily and mixed-use properties. The deal enjoyed strong demand and was oversubscribed with broad institutional participation, backed by strong origination capacity and the credit performance of the more than $4 billion in loans originated by Roc360 since 2014.
Nomura Securities International, Inc. acted as sole lead structuring agent of the transaction. Morgan Stanley & Co. LLC served as joint bookrunner and co-lead manager on the transaction.
This is the first securitization from Roc360, a data science driven PropTech lender headed by founder and Chief Executive Officer Arvind Raghunathan, PhD. and co-founded by Maksim Stavinsky, Chief Operating Officer, and Eric Abramovich, Chief Credit Officer. Roc360’s advisory board is led by Deven Sharma, Ph.D., formerly President of Standard & Poor’s.
The securitization features a two-year revolving period during which principal collections on the underlying mortgage loans can be used to purchase additional loans and fund rehabilitation draws. Credit enhancement for the transaction includes subordination of the notes, overcollateralization and excess spread.
Roc360 is an industry leading, vertically-integrated digital financial services platform and lender facilitating a broad range of residential real estate loans for professional investors. Founded in 2014, Roc360 employs over 250 people and has funded in excess of $4 billion in loans. The company is headquartered in New York City, with offices on four continents.