VIUM Capital and its joint venture partner Merchants Capital have closed on their second securitization of healthcare commercial real estate bridge loans. The $630 million securitization pool comprises loans that were originated by VIUM and underwritten and closed on the balance sheet of Merchant’s parent, Merchants Bank of Indiana, within the past 16 months.
The 21 loans are collateralized by 74 properties across 15 states, including independent living, assisted living, memory care and skilled nursing facilities, and did not see interest rates or terms affected by the securitization. They also have a weighted average loan-to-value ratio of 69% and a weighted average debt yield above 15%. Secured as a credit risk transfer (CRT), VIUM and Merchants, in collaboration with ATLAS SP Partners as the structuring agent and sole bookrunner, partnered with a large investment manager specialized in alternative assets to purchase the junior securities, which totaled 15% of the transaction. As part of its purchase, the investor also retained the first loss risk retention certificates as a third-party purchaser.
The securitization provides Merchants with capital relief and credit risk reduction, which enables it and VIUM to expand their bridge loan capacity. It also follows VIUM and Merchant’s 2023 securitization, which totaled $1.1 billion in skilled nursing and seniors housing bridge loans.
